Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable … sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …. We then quantitatively fit the parameters of the model to the data, finding that innovation at the macro level is about 5 …

framework that contains multiple innovation sizes, multi-product firms, and entry/exit. Firms invest in exploration R&D to … regularities regarding innovation and growth differences across the firm size distribution. We also incorporate patent citations …