Front cover -- The Economics of Innovation -- Copyright page -- Contents -- List of Contributors -- The Editors … -- Acknowledgements -- Appendix -- References -- Chapter 2. Innovation, Duplication, and the Contract Theory of Patents -- Abstract -- 1 …

We investigate the timing of adoption of product and process innovation by using a differential game in which firms may … invest in both activities. We consider horizontal product innovation that reduces product substitutability, and process … innovation that reduces marginal cost. First, we demonstrate that the incentive for cost-reducing investment is relatively higher …

We model the optimal behaviour of a multiproduct monopolist investing both in process and in product innovation in a … dynamic setting. Product innovation reduces the degree of substitutability between any two varieties. First, we find that R …