A Two-countries Two-R&D-sectors Model of Growth and Trade

Gilles Koléda ()

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: This paper presents a two-countries dynamic model of Schumpeterian growth with two innovative R&D sectors in each country: a vertical R&D sector that improves the quality of existing differentiated products and a horizontal R&D sector that creates new differentiated products. The two countries exchange differentiated products and beneficiate from knowledge spillovers, possibly from the other country. We opt for an endogenous growth without scale effect specification à la Howitt (1999) and explore the consequence on home research and production of an increase of research capacities in foreign country (possibly impulsed by R&D subsidies).

Keywords: Endogenous growth without scale effect; innovation; Trade; spillovers; R&D subsidies (search for similar items in EconPapers)
JEL-codes: F43 O31 O34 O40 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2007-06
New Economics Papers: this item is included in nep-ino, nep-int, nep-knm and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:deg:conpap:c012_009

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