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Innovation, specialization and growth in a model of structural change

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  • R. Andergassen
  • F. Nardini
  • M. Ricottilli

Abstract

The aim of this paper is to investigate the nexus between demand patterns and innovation as it stems from research efforts and the extent of specialization. In the proposed model an innovation race conducted by entrants investing in research and development against established incumbents raises productivity at the industry level and leads to a shift in the aggregate demand pattern and consequently to a redistribution of the profit fund among industries and a restructuring of the production process in each industry. The paper argues that the degree of development as reflected in a demand share distribution is characterized by a corresponding distribution of specialized sectors that becomes more even across industries as the development process proceeds and investigates the consequences in terms of economic growth.

Suggested Citation

  • R. Andergassen & F. Nardini & M. Ricottilli, 2010. "Innovation, specialization and growth in a model of structural change," Working Papers wp718, Dipartimento Scienze Economiche, Universita' di Bologna.
  • Handle: RePEc:bol:bodewp:wp718
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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