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Horizontal Innovation in the Theory of Growth and Development

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Author Info
Gino Gancia ()
Fabrizio Zilibotti

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Abstract

We analyze recent contributions to growth theory based on the model of expanding variety of Romer (1990). In the first part, we present different versions of the benchmark linear model with imperfect competition. These include the “labequipment” 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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Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 831.

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Date of creation: Jan 2005
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Handle: RePEc:upf:upfgen:831

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Related research
Keywords: appropriate technology; complementarity; cycles; convergence; directed technical change; endogenous growth; expanding variety; financial development; imperfect competition; integration; innovation;

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Find related papers by JEL classification:
D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Investment, or Financing
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F15 - International Economics - - Trade - - - Economic Integration
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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  1. Olaf Posch & Klaus Wälde, 2006. "Natural volatility, welfare and taxation," Working Papers 2007_33, Department of Economics, University of Glasgow. [Downloadable!]
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  2. Dominique Bianco, 2007. "An Inverted U-Relationship between Product Market Competition and Growth in an Extended Romerian Model: A Comment," Rivista di Politica Economica, SIPI Spa, vol. 97(5), pages 245-258, September. [Downloadable!]
  3. Bianco, Dominique, 2009. "Competition and Growth in an Endogenous Growth Model with Expanding product Variety without Scale Effects Revisited," MPRA Paper 16670, University Library of Munich, Germany. [Downloadable!]
  4. 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!]
  5. Liliane Karlinger, 2009. "Vertical Relations in the Presence of Competitive Recycling," Vienna Economics Papers 0912, University of Vienna, Department of Economics. [Downloadable!]
  6. 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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  7. Zoltan Acs & Pontus Braunerhjelm & David Audretsch & Bo Carlsson, 2009. "The knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 32(1), pages 15-30, January. [Downloadable!] (restricted)
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  8. Schclarek, Alfredo, 2006. "Industry Diversification, Financial Development and Productivity-Enhancing Investments," Working Papers 2006:19, Lund University, Department of Economics. [Downloadable!]
  9. 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!]
  10. 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!]
  11. 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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  12. Gerhard Sorger, 2006. "Quality-improving horizontal innovations," Vienna Economics Papers 0609, University of Vienna, Department of Economics. [Downloadable!]
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