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Outsourcing and Technological Innovations: A Firm-Level Analysis

Bartel, Ann P; Lach, Saul; Sicherman, Nachum - C.E.P.R. Discussion Papers - 2008

This paper presents a dynamic model that analyzes how firms’ expectations with regards to technological change influence the demand for outsourcing. We show that outsourcing becomes more beneficial to the firm when technology is changing rapidly. As the pace of innovations in production...

Persistent link: https://www.econbiz.de/10005114472

When Does Labor Scarcity Encourage Innovation?

Acemoglu, Daron - C.E.P.R. Discussion Papers - 2009

This paper studies the conditions under which the scarcity of a factor (in particular, labor) encourages technological progress and technology adoption. In standard endogenous growth models, which feature a strong scale effect, an increase in the supply of labor encourages technological...

Persistent link: https://www.econbiz.de/10005791910

Factor Saving Innovation

Boldrin, Michele; Levine, David - C.E.P.R. Discussion Papers - 2002

It has been argued that concave models exhibit less ‘endogeneity of growth’ than models with increasing returns to scale. Here we study a simple model of factor saving technological improvement in a concave framework. Capital can be used either to reproduce itself, or, at some additional...

Persistent link: https://www.econbiz.de/10005114155

Strategic Advantage and the Optimal Exercise of Entry Options

Perotti, Enrico C; Rossetto, Silvia - C.E.P.R. Discussion Papers - 2001

We investigate the timing and the valuation of strategic investment aimed at enhancing entry opportunities in related … the strategic investment grants a strong competitive advantage, the innovator can optimally choose the timing of entry; in …, the value of waiting to invest rises, but the value of a strategic investment increases even more. In some cases …

Persistent link: https://www.econbiz.de/10005662306

Optimal Project Rejection and New Firm Start-Ups

Cassiman, Bruno; Ueda, Masako - C.E.P.R. Discussion Papers - 2002

Entrants are typically found to be more innovative than incumbent firms. Furthermore, these innovative ideas often originate with established firms in the industry. Therefore, the established firm and the start-up firm seem to select different types of projects. We claim that this is the...

Persistent link: https://www.econbiz.de/10005662308

Innovation, Competition, and Investment Timing

Koskinen, Yrjö; Mæland, Jøril - C.E.P.R. Discussion Papers - 2012

In our model multiple innovators compete against each other by submitting investment proposals to an investor. The …' informational rents, since innovators are more likely to lose the competition if they inflate investment costs. Consequently …

Persistent link: https://www.econbiz.de/10011084370

The Impact of R&D Subsidies on the Introduction of New Products by Incumbent Firms

Siebert, Ralph - C.E.P.R. Discussion Papers - 2003

This Paper analyses the impact of R&D subsidies on incumbent firms to introduce new goods. We are especially interested in investigating various consequences of government subsidies for R&D, provided to firms that offer products of different qualities. This study examines the incentives of...

Persistent link: https://www.econbiz.de/10005504784

Profiting from Innovation: Firm Level Evidence on Markups

Cassiman, Bruno; Vanormelingen, Stijn - C.E.P.R. Discussion Papers - 2013

While innovation is argued to create value, private incentives of firms to innovate are driven by what part of the value created firms can appropriate. In this paper we explore the relation between innovation and the markups a firm is able to extract after innovating. We estimate firm-specific...

Persistent link: https://www.econbiz.de/10011083230

Vaccines vs. Preventives

Kremer, Michael; Snyder, Christopher - C.E.P.R. Discussion Papers - 2015

Preventives are sold ex ante, before disease status is realized, while treatments are sold ex post. Even if the mean of the ex ante distribution of consumer values is the same as that ex post, the shape of the distributions may differ, generating a difference between the surplus each product can...

Persistent link: https://www.econbiz.de/10011196028

Innovation and Market Structure: An Empirical Evaluation of the 'Bounds Approach' in the Chemical Industry

Uribe, Marín; Luis, Pedro; Siotis, Georges - C.E.P.R. Discussion Papers - 2002

This Paper empirically tests the ‘bounds approach’ to industry structure proposed by Sutton ((1991), (1998)). To carry out this task, we focus on the chemical industry. Part of the novelty in this exercise is that we work on the finest possible level of disaggregation. Also, we identify...

Persistent link: https://www.econbiz.de/10005656233