This study examines the role of information transparency in facilitating peer firms’ investment in follow-on innovation. We capture information transparency with both textual and numerical information disclosed in 10-Ks. Using patent citations to proxy for investment in follow-on innovation,...

The current Chinese development model is nearing its limits. The World Bank has cautioned that China could find itself in a “middle-income trap”. China recognizes that it must dramatically increase its capacity for innovation to avoid this trap. This chapter provides an introduction to the...

We explore the impact of informal institutions on technological change in transition, comparing the 89 regions of the Russian Federation. We use panel data during the period of recovery and growth, 1998-2004. The one-country framework provides a constant background — unlike, for example, in...

Inclusive development is a key policy priority since growth processes have not always helped lowerincome groups. Innovation is a major driver of growth and its relationship with inequalities in income and opportunities raises some important policy questions: Do innovation and the resulting...

We estimate the private value of Apple's iPhone by observing abnormal stock market reactions to news announcements and patent publications related to the innovation. Our estimate of the lower bound on the market valuation of iPhone is fairly high, at minimum 30 billion U.S. (event day) dollars....

We provide evidence that over the past 30 years, U.S. firms have expanded their scope of operations. Increases in scope and scale were achieved largely without increasing traditional operating segments. Scope expansion significantly increases valuation and is primarily realized through...

Private ownership should generally be preferred to public ownership when the incentives to innovate and to contain costs must be strong. In essence, this is the case for capitalism over socialism, explaining the dynamic vitality of free enterprise. The great economists of the 1930s and 1940s...