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'Diversity Is, Uh ..., Homogeneity': The Case of Horizontal Innovation

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  • MAN-SEOP PARK

    ()
    (Department of Economics, Korea University)

Abstract

The literature on 'horizontal innovation' claims to analyse the cases where unbounded endogenous growth comes from an increasing variety of intermediate goods. The present paper contends that a good sample of representative models in this literature share two essential assumptions regarding production technology and that these assumptions together amount to assuming the homogeneity of various intermediate goods. In these models, there is no variety of intermediate goods to increase due to the R&D activity; what increases is a mass of a single homogeneous intermediate good.

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Bibliographic Info

Paper provided by Institute of Economic Research, Korea University in its series Discussion Paper Series with number 0505.

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Date of creation: 2005
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Handle: RePEc:iek:wpaper:0505

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Keywords: horizontal innovation; Dixit-Stiglitz technology;

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