We develop a theory of innovation for entry and sale into oligopoly, and show that an invention of higher quality is … allocated to high-quality invention projects. Using data on patents granted to small firms and individuals, we find evidence … that high-quality inventions are sold under bidding competition. Asymmetric information problems are shown to be solved by …

innovation to the financiers through patenting and prototyping activities, right in the early stages of the venture. We build a … external finance, especially equity. However, the most important determinant of debt is house ownership. This indicates that …

attention to patent quality, financing those ventures faster which later turn out to have high-quality patents. Patent …

This Paper compares the financing of new ventures in start-ups (entrepreneurship) and in established firms … can arise (and sometimes coexist). In a low (high) entrepreneurship equilibrium, the market for failed entrepreneurs is … (entrepreneurship). We also characterize conditions under which there can be too little or too much entrepreneurial activity in …