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Technological Spillovers and Patterns of Growth with Sector-Specific R&D

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  • Doi, Junko
  • Mino, Kazuo

Abstract

This paper studies a two-sector model of endogenous technical change in which expansion of each production sector is associated with sector-specific R&D investment. It is shown that the pattern of growth is sensitive to the specification of intersectoral technological spillover as well as to the preference structure. If technological spillovers and preferences of consumers are represented by CES functional forms, the balanced-growth equilibrium may not exhibit a well-behaved saddlepoint property: it is possible that the balanced-growth path is locally indeterminate or unstable. In addition, a slight modification of technological spillover effects easily yields multiple balanced-growth paths. In contrast, Cobb-Douglas specifications present a unique and determinate balanced-growth path.

Suggested Citation

  • Doi, Junko & Mino, Kazuo, 2004. "Technological Spillovers and Patterns of Growth with Sector-Specific R&D," MPRA Paper 16995, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:16995
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    Citations

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    Cited by:

    1. Jan Lambooy, 2010. "The Evolution of Spatial Patterns over Long Time-Horizons: The Relation with Technology and Economic Development," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 22, Edward Elgar Publishing.
    2. Tom-Reiel Heggedal, 2008. "On R&D and the undersupply of emerging versus mature technologies," Discussion Papers 571, Statistics Norway, Research Department.
    3. Simone Valente, 2009. "Optimal Policy and Non-Scale Growth with R&D Externalities," CER-ETH Economics working paper series 09/116, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    4. Ohki, Kazuyoshi, 2015. "Analysis of transition dynamics caused by technological breakthroughs: Cause of productivity slowdown and drop in existing firms’ stock prices," Structural Change and Economic Dynamics, Elsevier, vol. 35(C), pages 12-25.
    5. Kazuyoshi Ohki, 2016. "Welfare analysis and policy implications in Melitz-type model where markup differs across industries," ISER Discussion Paper 0984, Institute of Social and Economic Research, Osaka University.
    6. Abdolmajid Mohammadi & Akbar Veismoradi & Hamidreza HAjHashemi & Peyman Akbari & Reza Rostami, 2015. "The Estimation of the Share of Technological Spillover in Sectorial-Regional Growth (Case Study: 29 Production Sectors of 30 Iran Provinces)," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(3), pages 371-390, March.

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    More about this item

    Keywords

    R&D based growth; two-sector economy; technological spillover;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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