How does policy affect innovation and the digital economy? We revisit how standard product market regulation affects innovation and develop a novel framework for thinking about digital regulation. Using new establishment-level micro-data across 12 countries between 1998 and 2012, this paper...

Models of creative destruction posit that recessions are periods of reallocation and disruption, generating new ideas that catapult new firms to the frontier. However, empirical evidence suggests that research and development (R&D) expenditures and patenting is procyclical, not counter-cyclical....