Phases of Imitation and Innovation in a North-South Endogenous Growth Model
In this paper, we develop a North-South endogenous growth model to examine three phases of development in the South: imitation of Northern products, imitation and innovation and finally, innovation only. In particular, the model has the features of catching up (and potentially overtaking) which are of particular relevance to the Pacific Rim economies. We show that the possible equilibria depend on cross-country assimilation effects and the ease of imitation. We then apply the model to analyse the impact of R&D subsidies. There are some clear global policy implications which emerge from our analysis. Firstly, because subsidies to Southern innovation benefit the North as well, it is beneficial to the North to pay for some of these subsidies. Secondly, because the ability of the South to assimilate Northern knowledge and innovate depends on Southern skills levels, the consequent spillover benefits on growth make the subsidising of Southern education by the North particularly attractive.
|Date of creation:||Jul 1996|
|Contact details of provider:|| Postal: Guildford, Surrey GU2 5XH|
Phone: (01483) 259380
Fax: (01483) 259548
Web page: http://www.surrey.ac.uk/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Segerstrom, Paul S & Anant, T C A & Dinopoulos, Elias, 1990. "A Schumpeterian Model of the Product Life Cycle," American Economic Review, American Economic Association, vol. 80(5), pages 1077-1091, December.
- Helpman, E., 1992.
"Innovation, Imitation and intellectual Property Rights,"
Harvard Institute of Economic Research Working Papers
1597, Harvard - Institute of Economic Research.
- Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-1280, November.
- Elhanan Helpman, 1992. "Innovation, Imitation, and Intellectual Property Rights," NBER Working Papers 4081, National Bureau of Economic Research, Inc.
- Klaus Waelde, 1994. "Transitional dynamics, convergence and international capital flows in two-country models of innovation and growth," International Trade 9403002, EconWPA, revised 06 Apr 1994.
- Dinopoulos, Elias & Oehmke, James F. & Segerstrom, Paul S., 1993.
"High-technology-industry trade and investment : The role of factor endowments,"
Journal of International Economics,
Elsevier, vol. 34(1-2), pages 49-71, February.
- Dinopoulos, Elias & Oehmke, James F. & Segerstrom, Paul S., 1990. "High-Technology-Industry Trade and Investment: The Role of Factor Endowments," Staff Papers 201142, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Michael B. Devereux & Beverly J. Lapham, 1994.
"The Stability of Economic Integration and Endogenous Growth,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 109(1), pages 299-305.
- Michael B. Devereux & Beverly J. Lapham, 1993. "The Stability of Economics Integration and Endogenous Growth," Working Papers 878, Queen's University, Department of Economics.
- Nancy L. Stokey, 1995. "R&D and Economic Growth," Review of Economic Studies, Oxford University Press, vol. 62(3), pages 469-489.
- Grossman, Gene M & Helpman, Elhanan, 1990.
"Comparative Advantage and Long-run Growth,"
American Economic Review,
American Economic Association, vol. 80(4), pages 796-815, September.
- Rivera-Batiz, Luis A. & Romer, Paul M., 1991.
"International trade with endogenous technological change,"
European Economic Review,
Elsevier, vol. 35(4), pages 971-1001, May.
- Luis A. Rivera-Batiz & Paul M. Romer, 1991. "International Trade with Endogenous Technological Change," NBER Working Papers 3594, National Bureau of Economic Research, Inc.
- Charles I. Jones, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 495-525.
- Chou, Chien-Fu & Shy, Oz, 1991. "A Model of Technology Gap, Product Cycle, and the Process of Catching Up between the North and the South," The Economic Record, The Economic Society of Australia, vol. 67(198), pages 217-226, September.
- Luis A. Rivera-Batiz & Paul M. Romer, 1990.
"Economic Integration and Endogenous Growth,"
NBER Working Papers
3528, National Bureau of Economic Research, Inc.
- Paul Krugman, 1989. "Is Bilateralism Bad?," NBER Working Papers 2972, National Bureau of Economic Research, Inc.
- Brezis, Elise S & Krugman, Paul R & Tsiddon, Daniel, 1993. "Leapfrogging in International Competition: A Theory of Cycles in National Technological Leadership," American Economic Review, American Economic Association, vol. 83(5), pages 1211-1219, December.
- Segerstrom, Paul S, 1991.
"Innovation, Imitation, and Economic Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 99(4), pages 807-827, August.
When requesting a correction, please mention this item's handle: RePEc:sur:surrec:9602. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ioannis Lazopoulos)
If references are entirely missing, you can add them using this form.