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Spillovers and the competitive pressure for long-run innovation

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  • Reis, Ana Balcão
  • Traca, Daniel A.

Abstract

This 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 Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 52 (2008)
Issue (Month): 4 (May)
Pages: 589-610

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Handle: RePEc:eee:eecrev:v:52:y:2008:i:4:p:589-610

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  7. Sergio Rebelo, 1999. "Long Run Policy Analysis and Long Run Growth," Levine's Working Paper Archive 2114, David K. Levine.
  8. Daniel Traca, 2002. "Imports-as-competitive-discipline: the role of the productivity gap," ULB Institutional Repository 2013/9233, ULB -- Universite Libre de Bruxelles.
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Cited by:
  1. Tom-Reiel Heggedal, 2008. "On R&D and the undersupply of emerging versus mature technologies," Discussion Papers 571, Research Department of Statistics Norway.
  2. Gil, Pedro Mazeda, 2010. "Stylised facts and other empirical evidence on firm dynamics, business cycle and growth," Research in Economics, Elsevier, vol. 64(2), pages 73-80, June.

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