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Horizontal Innovation in the Theory of Growth and Development

In: Handbook of Economic Growth

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Gancia, Gino
Zilibotti, Fabrizio

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Abstract

We analyze recent contributions to growth theory based on the model of expanding variety of Romer [Romer, P. (1990). "Endogenous technological change". Journal of Political Economy 98, 71-102]. In the first part, we present different versions of the benchmark linear model with imperfect competition. These include the "lab-equipment" model, "labor-for-intermediates" and "directed technical change". We review applications of the expanding variety framework to the analysis of international technology diffusion, trade, cross-country productivity differences, financial development and fluctuations. In many such applications, a key role is played by complementarities in the process of innovation.

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This chapter was published in: Philippe Aghion & Steven Durlauf (ed.) Handbook of Economic Growth, , chapter 03, pages 111-170, 2005.

This item is provided by Elsevier in its series Handbook of Economic Growth with number 1-03.

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This chapter was published in the following book, which is listed on IDEAS:
Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1. [Downloadable!] (restricted)
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O0 - Economic Development, Technological Change, and Growth - - General

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  2. Bianco, Dominique, 2007. "An inverted-U relationship between product market competition and Growth in an extended romerian model : A comment," MPRA Paper 4492, University Library of Munich, Germany. [Downloadable!]
  3. Alessandra Bonfiglioli & Gino Gancia, 2007. "North-South Trade and Directed Technical Change," UFAE and IAE Working Papers 713.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC), revised 27 Jun 2008. [Downloadable!]
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  4. Schclarek, Alfredo, 2006. "Industry Diversification, Financial Development and Productivity-Enhancing Investments," Working Papers 2006:19, Lund University, Department of Economics. [Downloadable!]
  5. Alberto BUCCI, 2004. "An inverted-U relationship between product market competition and growth in an extended Romerian model," Departemental Working Papers 2004-26, Department of Economics University of Milan Italy. [Downloadable!]
  6. Alexandre Almeida & Aurora A.C. Teixeira, 2007. "Does Patenting negatively impact on R&D investment?An international panel data assessment," FEP Working Papers 255, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  7. Volker Grossmann & Thomas M. Steger, 2007. "Growth, Development, and Technological Change," IZA Discussion Papers 2558, Institute for the Study of Labor (IZA). [Downloadable!]
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  8. Gerhard Sorger, 2006. "Quality-improving horizontal innovations," Vienna Economics Papers 0609, University of Vienna, Department of Economics. [Downloadable!]
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