Competition, R&D Activities and Endogenous Growth
A prediction of the endogenous growth models with quality ladders is that there exists a negative relation between growth and the degree of market competition. The aim of this article is to shed light on the relation between competition and growth when horizontal and vertical innovations can simultaneously occur by adopting the structure of the patent race model; we show the way in which the toughness of competition influences the firms’ incentives to invest in the two R&D activities; in particular, the presence of vertical and horizontal differentiation can determine a non monotonic long run relationship between competition and growth.
|Date of creation:||01 Dec 2003|
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- Aghion, Philippe & Howitt, Peter, 1992.
"A Model of Growth through Creative Destruction,"
Econometric Society, vol. 60(2), pages 323-51, March.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
- Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Segerstrom, Paul S, 2000.
"The Long-Run Growth Effects of R&D Subsidies,"
Journal of Economic Growth,
Springer, vol. 5(3), pages 277-305, September.
- Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
- Boone, Jan, 2001. "Intensity of competition and the incentive to innovate," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 705-726, April.
- Boone, J., 2000.
"Competitive pressure : The effects on investments in product and process innovation,"
Other publications TiSEM
88418185-7603-4c36-92fd-3, Tilburg University, School of Economics and Management.
- Jan Boone, 2000. "Competitive Pressure: The Effects on Investments in Product and Process Innovation," RAND Journal of Economics, The RAND Corporation, vol. 31(3), pages 549-569, Autumn.
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