innovation, and it is more rare and much harder to discover than sustaining innovation. But, it provides both higher investment …

We investigate the roles played by unexpected demand shocks, besides productivity, on firms' capital investment and … productivity and demand shocks are both significant factors determining firm behavior, the former is more dominant for investment … productivity, are important factors when analyzing capital investment and firm exit decisions …

leverage incumbents do not. This difference in investment matters because capacity installations preempt eventual entry. Indeed … findings suggest that leverage matters for industry composition, not just firm-level investment …

important drivers of the competitiveness of established firms. Conservative estimates suggest that the optimal investment is at … least 0.7 to 2.5 times the actual R&D investment for a firm at the median of the productivity growth and 2 to 4 times for a …

We study optimal investment in technologies characterized by the learning curve. There are two investment patterns … scale. If the curve is steep, firms invest earlier and on a smaller scale. We further demonstrate that learning investment … differs greatly from investment in technologies without learning effects. Learning investments generate substantial initial …

If the relation between investment and economic growth is well established in the macroeconomic literature, the … linking investment and firm performance in the French and Italian manufacturing industries. It does so by putting forth a … novel methodology to identify investment spikes that corrects for size dependence. While maintaining the desired properties …