Occasional Paper Number 25 "The Economic Determinants of Innovation" by Randall Morck of the University of Alberta and Bernard Yeung of New York University, is now available on-line at http://strategis.ic.gc.ca/SSG/ra01788e.html.
This paper provides a comprehensive overview of the key components of the business environment that influence innovation. It describes the difference between competition among innovators and "normal" competition. It also looks at the effects of intellectual property rights, firm size, financial systems, geographic clusters, government policy, corporate governance and income inequality on the innovative performance of an economy.
This paper is part of the Industry Canada Research Publications Program.