Economics at your fingertips  

Innovation by Heterogeneous Leaders

Tatsuro Iwaisako () and Kazuyoshi Ohki

Scandinavian Journal of Economics, 2019, vol. 121, issue 4, 1673-1704

Abstract: We develop a Schumpeterian growth model in which leaders and followers conduct research and development (R&D) activities and in which leaders have different‐sized quality leads over their followers, and thus have different profit flows. We show that leaders with larger quality leads make smaller R&D investments; this result is consistent with the actual behaviors of some previous leader firms, such as Sony and Eastman–Kodak. Moreover, we show that subsidizing the R&D of followers can promote the aggregate R&D of leaders, because promotion of followers' R&D decreases (increases) the number of leaders with larger (smaller) quality leads and smaller (larger) R&D investments.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

Related works:
Working Paper: Innovation by Heterogeneous Leaders (2018) Downloads
Working Paper: Innovation by Heterogeneous Leaders (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520

Access Statistics for this article

Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

More articles in Scandinavian Journal of Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2021-03-01
Handle: RePEc:bla:scandj:v:121:y:2019:i:4:p:1673-1704