Three Essays on R&D Investment

The first essay titled “Fundamental Sources of Long-run Labour Productivity Improvements in Canada” examines the importance of Research and Development activities, as well as the stock of public infrastructure, and economic openness as sources of growth in labour productivity in the Canadian economy within the last four decades. The second paper titled “R&D Spillovers, Innovation, and Entry” extends a theoretical framework to analyze the impact of R&D spillovers on entry and the resulting equilibrium market structure. It is shown that the degree of spillovers plays a fundamental role on the number of firms entering the market, their R&D activities, and social welfare. The third paper titled “The Search for New Drugs: A Theory of R&D in the Pharmaceutical Industry” uses a dynamic model of optimal patent design and in the presence of information externalities studies the evolution of technological progress in the context of a pharmaceutical industry