Horizontal Innovation in the Theory of Growth and Development

Gino Gancia and Fabrizio Zilibotti

No 200, Working Papers from Barcelona School of Economics

Abstract: We analyze recent contributions to growth theory based on the model of expanding variety of Romer (1990). In the first part, we present different versions of the benchmark linear model with imperfect competition. These include the "lab equipment" model, "labor-for-intermediates" and "directed technical change". We review applications of the expanding variety framework to the analysis of international technology diffusion, trade, cross-country productivity differences, financial development and fluctuations. In many such applications, a key role is played by complementarities in the process of innovation.

Keywords: appropiate technology; directed technical change; endogenous growth; expanding variety; imperfect competition (search for similar items in EconPapers)
JEL-codes: D92 E32 F12 (search for similar items in EconPapers)
Date: 2015-09
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Citations: View citations in EconPapers (96)

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Chapter: Horizontal Innovation in the Theory of Growth and Development (2005)
Working Paper: Horizontal innovation in the theory of growth and development (2005)
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