IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/20067.html
   My bibliography  Save this paper

Innovation and Imitation at Various Stages of Development: A Model with Capital

Author

Listed:
  • Polterovich, Victor
  • Tonis, Alexander

Abstract

A simple model of technological imitation and innovation is developed to explain club convergence in the evolution of the distribution of per-capita GDP over countries. Two versions of the model are studied and compared. The first one includes only innovation-imitation tradeoff, and the second one takes into account traditional investment decisions as well. It is shown that the introduction of capital does not affect the general structure of stationary equilibria: in both versions, there are three types of stable steady-state regimes, with only imitation, only innovation or a mixed policy. Using World Bank and ICRG statistical data for the period of 1980-1999, we test our hypothesis about the dependence of innovation and imitation costs on the relative productivity level, savings rate and an indicator of institutional quality. An appropriate choice of adjustment parameters of the model gives a possibility to generate trajectories of more than 80 countries and, for most of them, obtain qualitatively correct pictures of their evolution. The set of these trajectories reveals club convergence. It is shown that taking into account the evolution of the capital stock improves the quality of approximation.

Suggested Citation

  • Polterovich, Victor & Tonis, Alexander, 2005. "Innovation and Imitation at Various Stages of Development: A Model with Capital," MPRA Paper 20067, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:20067
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/20067/1/MPRA_paper_20067.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/20244/2/MPRA_paper_20244.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Polterovich, Victor & Tonis, Alexander, 2003. "Innovation and Imitation at Various Stages of Development," MPRA Paper 20065, University Library of Munich, Germany.
    2. Howitt, Peter & Mayer-Foulkes, David, 2005. "R&D, Implementation, and Stagnation: A Schumpeterian Theory of Convergence Clubs," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(1), pages 147-177, February.
    3. Feyrer James D, 2008. "Convergence by Parts," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-35, July.
    4. A. Chong & C. Calderón, 2000. "Causality and Feedback Between Institutional Measures and Economic Growth," Economics and Politics, Wiley Blackwell, vol. 12(1), pages 69-81, March.
    5. Barro, Robert J, 1996. "Institutions and Growth, an Introductory Essay," Journal of Economic Growth, Springer, vol. 1(2), pages 145-148, June.
    6. Costas Azariadis & Allan Drazen, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(2), pages 501-526.
    7. Barry P. Bosworth & Susan M. Collins, 2003. "The Empirics of Growth: An Update," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 113-206.
    8. Abdelhak Senhadji, 2000. "Sources of Economic Growth: An Extensive Growth Accounting Exercise," IMF Staff Papers, Palgrave Macmillan, vol. 47(1), pages 1-6.
    9. Brezis, Elise S & Krugman, Paul R & Tsiddon, Daniel, 1993. "Leapfrogging in International Competition: A Theory of Cycles in National Technological Leadership," American Economic Review, American Economic Association, vol. 83(5), pages 1211-1219, December.
    10. Polterovich, Victor & Henkin, Gennadi, 1998. "A Difference-differential Analogue of the Burgers Equation and Some Models of Economic Development," MPRA Paper 21031, University Library of Munich, Germany.
    11. Iwai, Katsuhito, 1984. "Schumpeterian dynamics : An evolutionary model of innovation and imitation," Journal of Economic Behavior & Organization, Elsevier, vol. 5(2), pages 159-190, June.
    12. Ruttan, Vernon W, 1997. "Induced Innovation, Evolutionary Theory and Path Dependence:," Economic Journal, Royal Economic Society, vol. 107(444), pages 1520-1529, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gombau, Verònica & Segarra Blasco, Agustí, 2011. "The Innovation and Imitation Dichotomy in Spanish firms: do absorptive capacity and the technological frontier matter?," Working Papers 2072/179666, Universitat Rovira i Virgili, Department of Economics.
    2. Segarra Blasco, Agustí, 1958- & Gombau, Verònica, 2013. "Young innovative firms and R&D strategies: is the Spanish case different?," Working Papers 2072/222200, Universitat Rovira i Virgili, Department of Economics.
    3. Balatsky, Ye., 2012. "Technological Diffusion and Investment Decision," Journal of the New Economic Association, New Economic Association, vol. 15(3), pages 10-34.
    4. Polterovich, Victor & Popov, Vladimir, 2006. "Stages of Development, Economic Policies and a New World Economic Order," MPRA Paper 20055, University Library of Munich, Germany.
    5. Zaytsev, Alexander, 2013. "Региональная Диагностика Эффективности Отраслевых Производств (На Примере Сельского Хозяйства) [Regional economic diagnostics of industry efficiency (in case of agriculture)]," MPRA Paper 52840, University Library of Munich, Germany.
    6. Polterovich, Victor & Tonis, Alexander, 2014. "Absorptive Capacity and Innovative Capability: An Approach to Estimation," MPRA Paper 56855, University Library of Munich, Germany.
    7. Полтерович В.М., 2009. "Проблема Формирования Национальной Инновационной Системы," Журнал Экономика и математические методы (ЭММ), Центральный Экономико-Математический Институт (ЦЭМИ), vol. 45(2), апрель.
    8. Verònica Gombau & Agustí Segarra, 2011. "The Innovation and Imitation Dichotomy in Spanish firms: do absorptive capacity and the technological frontier matter?," Working Papers XREAP2011-22, Xarxa de Referència en Economia Aplicada (XREAP), revised Dec 2011.
    9. Zaytsev, Alexander, 2015. "Производительность Труда В Отраслях Обрабатывающей Промышленности России: Динамика И Межстрановые Сопоставления [Labor productivity in Russian manufacturing industries: dynamics and international c," MPRA Paper 68407, University Library of Munich, Germany.
    10. Vladimir Komarov, 2012. "Main Principles of Innovation Theory," Published Papers 173, Gaidar Institute for Economic Policy, revised 2013.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Polterovich, Victor & Tonis, Alexander, 2003. "Innovation and Imitation at Various Stages of Development," MPRA Paper 20065, University Library of Munich, Germany.
    2. Polterovich, Victor & Tonis, Alexander, 2014. "Absorptive Capacity and Innovative Capability: An Approach to Estimation," MPRA Paper 56855, University Library of Munich, Germany.
    3. Steven N. Durlauf & Andros Kourtellos & Chih Ming Tan, 2008. "Empirics of Growth and Development," Chapters, in: Amitava Krishna Dutt & Jaime Ros (ed.), International Handbook of Development Economics, Volumes 1 & 2, volume 0, chapter 3, Edward Elgar Publishing.
    4. Howitt, Peter & Mayer-Foulkes, David, 2005. "R&D, Implementation, and Stagnation: A Schumpeterian Theory of Convergence Clubs," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(1), pages 147-177, February.
    5. Fulvio Castellacci, 2007. "Evolutionary And New Growth Theories. Are They Converging?," Journal of Economic Surveys, Wiley Blackwell, vol. 21(3), pages 585-627, July.
    6. Chang-Yang Lee, 2012. "Learning-by-doing in R&D, knowledge threshold, and technological divide," Journal of Evolutionary Economics, Springer, vol. 22(1), pages 109-132, January.
    7. Md. Rabiul Islam, 2009. "R&D Intensity, Technology Transfer and Absorptive Capacity," Monash Economics Working Papers 13-09, Monash University, Department of Economics.
    8. Fulvio Castellacci, 2011. "Theoretical Models of Heterogeneity, Growth and Competitiveness: Insights from the Mainstream and Evolutionary Economics Paradigms," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume II, chapter 5, Edward Elgar Publishing.
    9. Goñi, Edwin & Maloney, William F., 2017. "Why don’t poor countries do R&D? Varying rates of factor returns across the development process," European Economic Review, Elsevier, vol. 94(C), pages 126-147.
    10. B. Bhaskara Rao & Arusha Cooray, 2012. "How useful is growth literature for policies in the developing countries?," Applied Economics, Taylor & Francis Journals, vol. 44(6), pages 671-681, February.
    11. Pozzolo, Alberto Franco, 2004. "Endogenous Growth in Open Economies - A Survey of Major Results," Economics & Statistics Discussion Papers esdp04020, University of Molise, Department of Economics.
    12. Oleg Badunenko & Daniel Henderson & Romain Houssa, 2014. "Significant drivers of growth in Africa," Journal of Productivity Analysis, Springer, vol. 42(3), pages 339-354, December.
    13. Stöllinger, Roman, 2013. "International spillovers in a world of technology clubs," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 19-35.
    14. Enrico Spolaore & Romain Wacziarg, 2009. "The Diffusion of Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 469-529.
    15. Castellacci, Fulvio & Natera, Jose Miguel, 2013. "The dynamics of national innovation systems: A panel cointegration analysis of the coevolution between innovative capability and absorptive capacity," Research Policy, Elsevier, vol. 42(3), pages 579-594.
    16. Eric A. Hanushek & Ludger Woessmann, 2011. "How much do educational outcomes matter in OECD countries? [‘Accountability and flexibility in public schools: Evidence from Boston’s charters and pilots’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 26(67), pages 427-491.
    17. Oded Galor & Omer Moav & Dietrich Vollrath, 2009. "Inequality in Landownership, the Emergence of Human-Capital Promoting Institutions, and the Great Divergence," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(1), pages 143-179.
    18. Andros Kourtellos, 2011. "Modeling parameter heterogeneity in cross-country regression models," University of Cyprus Working Papers in Economics 11-2011, University of Cyprus Department of Economics.
    19. Fulvio Castellacci, 2011. "Closing the Technology Gap?," Review of Development Economics, Wiley Blackwell, vol. 15(1), pages 180-197, February.
    20. Shin-ichi Fukuda, 2008. "Knightian Uncertainty and Poverty Trap in a Model of Economic Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(3), pages 652-663, July.

    More about this item

    Keywords

    innovation; imitation; institutional quality;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:20067. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.