Through the study of innovation in processes for the production of
synthetic ammonia, the authors examine the effects of environmental
and workplace regulations on business innovation in general. They
present a history of ammonia production in the U.S., a survey of
government regulation in the industry, and a model of process
innovation that combines the economist's production function with
the technical and practical concepts of the engineer. Contrary to
the widely held view that regulation has an unfortunate impact on
business, the authors demonstrate that-at least in one industry-the
economic factors of production have a measurable impact on
innovation, while regulation does not.
General
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