... particular issues than those obtained from more conventional analysis. One of the limitations of the conventional emphasis on hardware and R&D is that it predisposes observers and policy makers to overlook innovation in the service sector. The service sector, which includes most of the new, fast...

... immediate consequence of this is asymmetric information between firms and potential suppliers of capital and between the R&D managers and the firm’s board of directors. Potential lenders cannot judge accurately the credibility of claims made by a firm nor can boards of directors always evaluate...

..., elasticity of demand, fixed costs, spillovers and subsidies. © Company 1996 Economic return Innovation Marketing R&D Stochastic modelling Welfare Formal analysis of the performance of innovating industries has focused largely on the first instance of innovation. This was justified...

... cheap, short production runs, this is, and will probably remain, a major source of globalization. The accelerating tempo in which new technologies are discovered and applied makes the cost of R&D soar, while the diffusion of new technology through the industrialized countries has become so much more...