Horizontal Innovation in the Theory of Growth and Development
In: Handbook of Economic Growth
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.Download Info
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Keywords:Other versions of this item:
- Gino Gancia & Fabrizio Zilibotti, 2005. "Horizontal innovation in the theory of growth and development," Economics Working Papers 831, Department of Economics and Business, Universitat Pompeu Fabra.
- Gino Gancia & Fabrizio Zilibotti, 2005. "Horizontal Innovation in the Theory of Growth and Development," Working Papers 200, Barcelona Graduate School of Economics.
- O0 - Economic Development, Technological Change, and Growth - - General
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