Leadership Contestability, Monopolistic Rents and Growth /

I construct an endogenous growth model where R and D is carried out at the industry level in a game of innovation between leaders and followers. Innovation costs for followers are assumed to increase with the technological lag from leaders. We obtain three results that contrast with standard Schumpe...

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Détails bibliographiques
Auteur principal: Piazza, Roberto
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 2011.
Collection:IMF Working Papers; Working Paper ; No. 2011/063
Accès en ligne:Full text available on IMF
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Résumé:I construct an endogenous growth model where R and D is carried out at the industry level in a game of innovation between leaders and followers. Innovation costs for followers are assumed to increase with the technological lag from leaders. We obtain three results that contrast with standard Schumpeterian models, such as Aghion and Howitt (1992). First, leaders may innovate in equilibrium, in an attempt to force followers out of the innovation game. Second, policies (such as patents) that allow for strong protections of monopolies can reduce the steady state growth rate of the economy. Third, multiple equilibria arise when monopolies' protection is large.
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Description matérielle:1 online resource (21 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accès:Electronic access restricted to authorized BRAC University faculty, staff and students