We find that greater institutional ownership is associated with more innovation. To explore the mechanism, we contrast … the "lazy manager" hypothesis with a model where institutional owners increase innovation incentives through reducing … career risks. The evidence favors career concerns. First, we find complementarity between institutional ownership and product …

innovation in "frontier" firms but may discourage it in "non-frontier" firms. A third prediction is that there is complementarity … competition and innovation uncovered by Scherer (1967). This model in turn delivers a number of testable prediction. A first … testable prediction is that the relationship between competition and innovation follows an inverted- U pattern and the average …

As countries develop, the main driver of economic growth shifts from imitation to innovation. These two sources of … imitation-based to an innovation-based economy calls the old welfare state model into question. It is not so much the size of … market-driven innovation process. This idea of a strategic state that targets its investments to maximize growth in the face …