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This paper addresses the role of product liability for the emergence and development of smart products such as autonomous vehicles (AVs). We analyze how the liability regime affects innovative activities, as well as the timing of market introduction and market penetration of such smart products....
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We analyze the effect of external financing and associated bankruptcy threat on the speed of product innovation in a … the R&D investment flow determines the distribution of the stochastic innovation time and at the same time influences the … debt in order to speed up innovation. Furthermore, we show that, due to the existence of financial frictions, the …
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