Suchergebnisse

Innovation is at the basis of economic development and as such, it is instrumental for developing countries. We review the literature on innovation from the perspectives of four select branches of economics to build a conceptual framework of innovation applicable to developing countries. The conceptual framework includes insights from the surveyed literature and identifies areas of further research. Finally, we conclude with policy recommendations for innovation policies in developing countries highlighting the fact that intellectual property protection is not likely to be at the basis of innovation in these countries.

This paper examines the relationship between the bundling decision of a large firm and the impact of spillovers from smaller firms drawing on stylized facts from the software industry. We find that bundling occurs only in the presence of significant spillovers from the two smaller firms. The large firm does not bundle when there are spillovers for only one product. Finally, we show that welfare is higher under bundling.