This paper reviews the literature on the role of public equity markets in the innovation ecosystem. The review … paper discusses the potential shortcomings of public equity markets that may hinder innovation, and highlights various …

innovation and thereby economic growth. Theoretically, dismissal laws make it costly for firms to arbitrarily discharge employees …. This enables firms to commit to not punish short-run failures of employees. Because innovation is inherently risky and …, but path-breaking, projects thereby fostering firm-level innovation. I provide empirical evidence supporting this thesis …