Firm Behavior, Innovation and the Functioning of Markets
We do empirical and theoretical research on firm behavior, innovations and the functioning of markets. Our research contributes to academic and public debates about four major challenges. First, we investigate the relationships between innovation, entrepreneurship, productivity and growth. This includes studies on, which types of entrepreneurial firms perform better than others, how intellectual property rights influence firms’ incentives to innovate, how firms’ bank relationship might interact with their incentives to innovative, or how changes in transportation infrastructure changes firms’ productivity. Second, we analyze which consequences the green transition and increased climate risks have on firms, different markets, and different industries. This research tries to answer questions like, how should the design of electricity markets or the pricing and regulation of energy networks be adapted to more electricity being produced from renewables and/or in a much more decentralized way, how are housing prices influenced by major investments in the public transport infrastructure, or which effects have increased climate risks on firms’ innovations. Third, we investigate how optimal regulations should be designed in the face of new (or old) social challenges. This research focusses on questions, such as: How do alternative ways to provide health care affect social welfare and equality? Which negative or positive externalities are created in the housing market due to regulations like parking rules, tax rules or how to decide on changes in commonly owned areas? Finally, we study, which impact the digitalization of the economy had on firms and households. What were the consequences for firms, which invested in the digital skills of their employees, and for those, which did not do so. Which drivers of the digitalization process can be identified in public and private organizations in Denmark?