Low Returns in R&D Due to Lack of Entrepreneurial Skills

Claudio Michelacci ()

No 3179, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This Paper proposes a model of endogenous growth where innovating requires both researchers, who produce inventions, and entrepreneurs who implement them. As research and entrepreneurship compete in the allocation of aggregate resources, the relation between growth and research effort is hump-shaped. When entrepreneurs appropriate too little rents from innovation, too few resources are allocated to entrepreneurship and returns to R&D are low because of this lack of entrepreneurial skills. When so, innovation should be promoted by encouraging entrepreneurship rather than research.

Keywords: Search with endogenous growth; R&d entrepreneurship (search for similar items in EconPapers)
JEL-codes: J24 O32 O40 (search for similar items in EconPapers)
Date: 2002-01
New Economics Papers: this item is included in nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Journal Article: Low Returns in R&D Due to the Lack of Entrepreneurial Skills (2003)
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