Product market regulation, innovation, and distance to frontier

Defensive strategies in quality ladders

“…Capital labour ratio and …nancial assets over GDP have a positive and signi…cant estimated elasticity. On the contrary, the lag of the closeness to the frontier fails to yields a signi…cant coe¢ cient in that model, though it appears with a signi…cant impact in comumn [3]. The di¤erence is probably due to the big loss of individuals (and e¢ ciency) in the model with full controls.…”

“…Now the e¤ect of regulation in the simple model (column [1]) appear to be negative and signi…cant. This is also true for the e¤ect of regulation in non-HT technologies in column [2] and [3], but the signi…cance is not attained when further controls are included (column [4]). Interestingly, a positive and signi…cant interaction between regulation and HT industries still shows up in these regressions.…”

“…We then allow for a di¤erentiated e¤ect of regulation depending on the size of innovation,which is captured by the interaction between regulation and the dummy variable HT (column [2]). In line with recent works on innovation, the model in column [3] includes the proximity to the technological frontier. We use the lag of this variable in order to avoid (at least in part) reverse causality caveats.…”

“…2 These di¢ culties re ‡ect the asymmetries between a successful innovator and its competitors. 3 If innovators are aware of their advantages they may incorporate new processes and components to in ‡uence the way in which knowledge can be reproduced. As a consequence, they can alter the path of innovation by introducing a "technological bias" that builds a barrier for their challengers.…”

Regulations in services sectors and their impact on downstream industries

“…Examples are Amable et al (2007), Arnold et al (2008), BenYahmed and Dougherty (2013), Bourlès et al (2013), Braila et al (2000). Cette et al (2013, 2014), Copenhagen Economics (2013), European Commission (2007, IMF(2015) and McMorrow et al (2009). including productivity, capital/investment and labour inputs are regressed on the REGIMPACT indicators, show that the different vintages and definitions yield broadly similar results.…”