Competition and growth: reinterpreting their relationship

Daria Onori

No 2010033, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: In this paper we modify a standard quality ladder model by assuming that R&D is driven by outsider firms and the winners of the race sell licenses over their patents, instead of entering directly the inter- mediate good sector. As a reward they get the aggregate profit of the industry. Moreover, in the intermediate good sector firms compete à la Cournot and it is assumed that there are spillovers represented by strategic complementarities on costs. Our goal is to prove that there exists an interval of values of the spillover parameter such that the relationship between competition and growth is an inverted-U-shape.

Keywords: quality ladder; Cournot oligopoly; strategic complementarities; competition and growth (search for similar items in EconPapers)
JEL-codes: L13 L16 O31 O52 (search for similar items in EconPapers)
Date: 2010-07-01
New Economics Papers: this item is included in nep-bec, nep-com, nep-cse, nep-ino, nep-ipr and nep-pr~
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Competition and Growth: Reinterpreting their Relationship (2015)
Working Paper: Competition and Growth: Reinterpreting their Relationship (2013)
Working Paper: Competition and Growth: Reinterpreting their Relationship (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2010033

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