Work

Never‐Ending Search for Innovation

Year: 2025

Type: article

Abstract: ABSTRACT We provide a model of investment in innovation that is dynamic, features multiple heterogeneous research projects of which only one potentially leads to success, and in each period, the researcher chooses the set of projects to invest in. We show that if a search for innovation starts, it optimally does not end until the innovation is found—which will be never with a strictly positive probability.

Source: Journal of Industrial Economics

DOI: 10.1111/joie.12413

Authors: Jean‐Michel Benkert, Igor Letina

Institutions: University of Bern, Centre for Economic Policy Research

Language: English

Topic: Capital Investment and Risk Analysis

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,350