Corporate lobbying impacts innovation and overall productivity in the U.S. Nasir Hossein Dad and his co-author have built a quantitative model that shows how firms decide to invest in lobbying and research and development (R&D) to strategically grow. Dad, a PhD candidate with the Department of Economics, and his co-author, Duc Nguyen have found that lobbying might substitute for R&D, reducing firms’ incentive to innovate, or complement it by increasing returns on innovation, making the net effect uncertain. [Read more…]