The analysis of innovation and the evolution of industries evolution has witnessed major progress in several areas …. Contributions at the empirical, appreciative, econometric and modelling levels have greater advanced our understanding of innovation … are required for a better understanding of the relationship between innovation and the evolution of industries: the …

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 …