This paper studies how reduced oversight creates an incentive for process innovation. With incomplete contracts, tight monitoring of workers creates a ratchet effect of innovation. Under reduced oversight, a worker accrues private knowledge about his innovation, which serves as a substitute for...

Firms can enhance product innovation performance by continuously staying in touch with customers and the market in general. While studies on market oriented product development have identified several general dimensions of market knowledge used in product innovation, the nature of market...

It has long been argued that geographic co-location supports knowledge spillovers. More recently, this argument has been challenged by showing that knowledge spillovers mainly flow through social networks, which may or may not be localized at various geographic scales. We further scrutinize the...

We formulate and solve the problem of optimal mechanism-design by a principal facing adverse selection and moral hazard from different sources. The parties' decision problem is comprised of a publicly observable collective choice and a partially private social choice. As in agency with pure...

The paper introduces the problem of unawareness into Principal-Agent theory and discusses optimal incentive contracts when the agent may be unaware of her action space. Depending on the agent's default behavior, it can be optimal for the principal to propose an incomplete contract (that keeps...

This paper describes the construction of a microlevel database on knowledge creation by higher education institutions (KC-HEI), accompanying the Global Knowledge InputOutput database (KIO, Davies et al., 2023). The database was created as part of Project Rethink GCS. KC-HEI links PATSTAT...

We assess the efficiency of regional innovation systems (RIS) in Germany by means of a knowledge production function. This function relates private sector research and development (R&D) activity in a region to the number of inventions that have been registered by residents of that region....

We investigate the contribution of different inputs, particularly different knowledge sources, on regional patenting output in the framework of a knowledge production function. The knowledge sources included are R&D employment, size of public research institutions by field of research (budget),...

We measure the efficiency of regional innovation systems (RIS) in Germany by means of a knowledge production function. This function relates private sector Research and Development (R&D) in a region to the number of inventions that have been registered by residents of that region. Two approaches...

Knowledge is recognized as a crucial element of economic growth in addition to physical capital and labor. Knowledge can be transformed into products and processes and is, in this way, exploited commercially. The ability to produce, identify, and exploit knowledge depends on the existing...