Spillovers and the competitive pressure for long-run innovation
AbstractThis paper discusses the impact of oligopolistic product markets for innovation and growth, highlighting a novel, fundamental role of spillovers. We develop a model of endogenous growth with non-tournament R&D, where spillovers raise the relative R&D efficiency of laggards. A key feature is that the rate of innovation and the market configuration (i.e. the distribution of market shares) are jointly determined. Our results emphasize the role of spillovers in sustaining the competitive pressure that is fundamental for long-run innovation and economic growth.
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Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 52 (2008)
Issue (Month): 4 (May)
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Web page: http://www.elsevier.com/locate/eer
Other versions of this item:
- Ana Balcão Reis & Daniel Traca, 2008. "Spillovers and the competitive pressure of long run innovation," ULB Institutional Repository 2013/14146, ULB -- Universite Libre de Bruxelles.
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