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R&D Cooperation, Innovation, and Growth

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  • Guido Cozzi
  • Ornella Tarola

Abstract

This paper presents a standard endogenous growth framework in which the source of growth is represented by vertical innovations. The crucial assumption we introduce is that there is a positive information gap concerning the discovery of innovation. The aim of reducing the information-dissemination lag provides incentives for firms to decide to merge their research efforts. Also, we find that the skilled--unskilled wage gap is strongly related to this phenomenon. We prove that changing antitrust attitudes toward efficiency-motivated mergers in contestable industries may simultaneously explain observed changes in the industry structure, qualitative innovation, wage inequality, and labor-supply composition.

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Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 162 (2006)
Issue (Month): 4 (December)
Pages: 683-701

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200612)162:4_683:rciag_2.0.tx_2-x

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Cited by:
  1. Zeira, Joseph, 2003. "Innovations, Patent Races and Endogenous Growth," CEPR Discussion Papers 3974, C.E.P.R. Discussion Papers.
  2. Chu, Angus C. & Furukawa, Yuichi, 2011. "On the optimal mix of patent instruments," Journal of Economic Dynamics and Control, Elsevier, vol. 35(11), pages 1964-1975.
  3. Gurrieri, Antonia Rosa, 2013. "Networking entrepreneurs," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 193-204.

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