In this paper, we analyze the relationship between innovation and firms governancestructure. We present and analyze a simple model in which the firm s governance struc-ture influences the behavior of innovative employees and, in turn, innovation bringsabout changes to the firm s governance...

We address the problem faced by innovators who have an idea for a marketable product butmust hire employees to bring the product to the market. Information leakage implies that newly hired employees become informed of the idea and may attempt to bring the product to the market themselves. We...

We analyze a model of bargaining over new ideas. The model accounts for the problem of information leakage, i.e., the diffusion of information about the idea before and after the idea is implemented. We analyze the effects of information leakage on the distribution of rents within firms and the...