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:||May 2005|
|Date of revision:|
|Contact details of provider:|| Postal: 309 Business Bldg., Box 19479, Arlington, Tx 76013|
Phone: (817) 272-3061
Fax: (817) 272-3145
Web page: http://economics.uta.edu/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:txa:wpaper:template. 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: (Shushanik Papanyan)
If references are entirely missing, you can add them using this form.