Questions tagged [innovation]

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Why does the Rocket Internet purposefully avoid the market of China?

I am studying a very interesting entrepreneurial case: Rocket Internet, and one thing that confuses me is that they do business outside the U.S.A. and China. “We identify and build proven Internet ...
Lerner Zhang's user avatar
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0 answers
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Brand Proliferation with Knowledge spillovers

I'm studying from the Gene Grossman and Helpman textbook (1993), the brand proliferation model with knowledge spillovers (Ch.3) I'm trying to understand the equilibrium dynamics of the model. In this ...
Maximilian's user avatar
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Can the Mahalanobis distance measure ( as defined by Bloom, Schankerman, Reenen Econometrica 2013) between a firm and itself be greater than 1?

I am currently working on estimating a Knowledge Proximity measures for firms and wanted to replicate the Mahalanobis distance measure discussed in Appendix C.2 of Bloom, Schankerman, and Van Reenen (...
Milenko Andres Fadic's user avatar
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3 answers
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Does a free market economy sustain a greater variety of business models in any given industry?

I have a mere hunch that in a free market economy, a greater variety of business models can be supported or sustained in each industry, when compared to a more centrally planned economy. However, I ...
Joebevo's user avatar
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2 answers
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Drug pricing, amount of sales and R&D costs

I've recently learned about Zolgensma drug that is currently priced at \$2.1 million (read more here) Since the biggest factor in price is probably R&D costs I wonder why won't they decrease the ...
ScienceSamovar's user avatar
2 votes
1 answer
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Market with changing number of goods and services

In the General Equilibrium framework of Arrow, Debreau and others, there are a fixed number of commodities, which I feel is a valid assumption in the short run but maybe not in the long run. Over time,...
Ishan Kashyap Hazarika's user avatar
1 vote
1 answer
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Has the ban of single-use plastics sparked innovation in biodegradable recyclable plastics?

One of the rationales of the single-use plastics ban adopted by the EP in 2019 was that it would spark innovation in cheap biodegradable recyclable plastics. Has any progress been registered in this ...
Probably's user avatar
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What is the term for requiring taxes/regulatory changes to be above a certain threshold to overcome organisational communication barriers

Help remembering the specific term for the following would be very much appreciated! The following: When a government implements a tax/regulation that is too low in stringency, the new policy may not ...
Niall Patrick's user avatar
3 votes
1 answer
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Would directing more money to science and research and development be an effective response to recessions?

Typical responses to recessions is to follow Keynesian economics and support demand. Would directing money towards science and research and development be a better long term solution to recessions ...
Scc33's user avatar
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Is there contradiction between ''job creation" and "growth" as implemented by automation?

Joint goals of job creation and sustainable growth are the main goals of majority of EU funding schemes. E.g. European Innovation Institute explicitly states in its mission https://eit.europa.eu/who-...
TomR's user avatar
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SIR Model and Information/ Innovation Economics

The SIR Model from epidemiology is being discussed a lot recently due to the COVID19 scenario. I recently read this article about the Corona virus and what economics can offer- https://afinetheorem....
Ishan Kashyap Hazarika's user avatar
3 votes
6 answers
410 views

Why do we spread knowledge across nations?

We have access to lots of knowledge on paper sharing platforms, open course platforms, open-source platforms and question asking platforms and etc, and Tesla opened all its electric car patents in ...
Lerner Zhang's user avatar
5 votes
3 answers
104 views

Do patents foster innovation?

I'm looking for a good meta analysis which answers the question if patents are generally beneficial to economy or not. Some papers I've read claim they are indispensable, other say it depends on the ...
CuriousIndeed's user avatar
3 votes
0 answers
39 views

Are that models that explain how companies become more efficient?

I'm trying to model/understand the following intuition: Company makes a product Product gets sold, company makes a profit Company does something with the profit to become "better" at what they do: ...
philee's user avatar
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1 answer
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Will BRICS countries be the leading innovation countries 20 years from now? [closed]

I wonder about the question given in the title. What could be arguments against this statement? Considering China and Russia: Both countries have an authoritarian political system. I claim - and ...
user503842's user avatar
1 vote
1 answer
79 views

Insect farming as future of protein nutrition: reality check

Currently, about 2bn people consume insects, so there must be a scaled industry already as well. Then, you can buy cricket powder at roughly $100/kg. Now my concern is: if this is already a common ...
J. Doe's user avatar
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Model of sales of a new product

I am looking for any popular model to calculate sales of a new product under the assumption that some goodnesses of the product are given. For example, the novelty $N$ and usefulness $U$ of a new ...
Light Yagmi's user avatar
1 vote
1 answer
382 views

How product leaks before announcements affect a company economically?

It happens specially for well known companies (e.g. Apple, Garmin, etc.) that some features of their products leaks into the media before the announcement. I was wondering what are the economical ...
Didami's user avatar
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Why are inventions inevitably correlated with imperfect competition?

Romer (1990) elaborates the incompatibility of nonrival inputs with constant returns to scale: If a production function depends on rival and nonrival inputs and both inputs are productive, then the ...
Fusscreme's user avatar
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1 answer
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Meaning of innovation in the wealth creation process

Is there a formal definition or measure of wealth that captures the notion that with improving technology "life gets better"? A stupid example of what I mean would be the invention of the iPhone. I ...
FloodLuszt's user avatar
1 vote
0 answers
129 views

Find the standard deviation of a log-normal AR1-process with exponent

I am trying to replicate a RBC model with technology shock $\log(z_{t+1})=\rho \log(z_t)+\epsilon_{t+1} \ $ with $\epsilon_t \sim$ i.i.d.$ \mathcal{N}(0,\sigma^2)$ and $0 < \rho < 1$ The ...
Chris tie's user avatar
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1 answer
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What does efficient and inefficient innovators mean?

I have been reading through this article about Innovation Indexes. In this, I have come across the terms: "Efficient Innovators" and "Inefficient Innovators" in this plot: So, what do they mean? ...
Dawny33's user avatar
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6 votes
2 answers
91 views

What fraction of new businesses die out within a year?

Is there a simple way to figure out how many new businesses appear and disappear each year in the US economy? It seems a key question to figure out how the economy is changing over time, although I ...
Fix.B.'s user avatar
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3 votes
1 answer
80 views

get statistics about the research intensity of an industry

I want to know how much research is conducted in an industry in order to be able to say Industry X is more research intense than Industry Y. For industry categorization I use the NACE classificiation....
beta's user avatar
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How does Schumpeter's view of capitalism's demise fit in with the importance he placed on innovation?

Schumpeter is widely remembered for his belief in the power of innovation and entrepreneurship within a capitalist framework. In fact he argues that capitalism owes much of its success to this. Yet, ...
Dan's user avatar
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7 votes
1 answer
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Intellectual property as a retarder of innovation

I am aware of some work such as O'Donoghue (1998): "A Patentability Requirement for Sequential Innovation", RAND Journal of Economics and Hunt (1999): "Nonobviousness and the incentive to ...
Ubiquitous's user avatar
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