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Rising R&D Intensity And Economic Growth

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  • ANDREAS POLLAK

Abstract

type="main" xml:id="ecin12096-abs-0001"> Over the past decades, private R&D spending in the United States and other developed countries has been growing faster than gross domestic product. At the same time, the growth rates of per-capita and aggregate output have been rather stable, possibly declining slightly. This article proposes a growth model that can account for the observed phenomenon by explicitly describing competition among technological leaders and followers in individual markets in a way that is consistent with existing studies on firms' motivation to invest in R&D. The model shows the possibility that the unsustainable trend of rising R&D intensity persists for a very long time. (JEL O3, O4, L1)

Suggested Citation

  • Andreas Pollak, 2014. "Rising R&D Intensity And Economic Growth," Economic Inquiry, Western Economic Association International, vol. 52(4), pages 1427-1445, October.
    • Handle: RePEc:bla:ecinqu:v:52:y:2014:i:4:p:1427-1445
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    More about this item

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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