Heterogeneous Innovation over the Business Cycle

We thank Catherine De Fontenay and seminar participants at the Chinese University of Hong Kong, Georgia Tech, MPI Munich, ETH Zurich, Harvard Business School, National Research University Higher School of Economics, NOVA SBE-BPI Conference, Paris Financial Management Conference, Taiwan Finance Association Conference, Stanford, Twelfth Annual Conference on Innovation Economics at Northwestern, University of Luxembourg, University of Melbourne, UNSW, University of Toronto, University of Technology Sydney, Western Finance Association Meeting, and three reviewers for helpful comments and suggestions. We also thank Guan Cheng Li for invaluable research assistance. We gratefully acknowledge financial support from the Coleman Fung Institute for Engineering Leadership, the National Science Foundation (1360228), and the Ewing Marion Kauffman Foundation. This paper previously circulated under the title “Heterogeneous Innovation and the Antifragile Economy.” Errors and omissions remain our own.

A supplemental appendix is available online at https://doi.org/10.1162/rest_a_01104.