Growth: Scale or market-size effects?

Angus Chu and Guido Cozzi

Economics Letters, 2019, vol. 178, issue C, 13-17

Abstract: Is the supply of researchers or the demand for technologies more important for innovation? The supply of research labor captures a scale effect, whereas the demand from production labor for technologies captures a market-size effect. We find that both the scale effect and the market-size effect are important for innovation and their relative importance depends on R&D labor intensity. We collect data on R&D labor intensity and find that it varies significantly across countries.

Keywords: Innovation; Economic growth; Scale effects; Market-size effects (search for similar items in EconPapers)
JEL-codes: O30 O40 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Working Paper: Growth: Scale or Market-Size Effects? (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:178:y:2019:i:c:p:13-17

DOI: 10.1016/j.econlet.2019.01.002

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