Heterogeneity in the internationalization of R&D: Implications for anomalies in finance and macroeconomics

Patrick Grüning

Finance Research Letters, 2018, vol. 26, issue C, 132-138

Abstract: Empirical evidence suggests that investments in research and development (R&D) by older and larger firms are more spread out internationally than R&D investments by younger and smaller firms. In this paper, I explore the quantitative implications of this type of heterogeneity by assuming that incumbents, i.e. current monopolists engaging in incremental innovation, have a higher degree of internationalization in their R&D technologies than entrants, i.e. new firms engaging in radical innovation, in a two-country endogenous growth general equilibrium model.

Keywords: Heterogeneous innovation; Technology spillover; Endogenous growth; Creative destruction; International finance (search for similar items in EconPapers)
JEL-codes: E22 F31 G12 O30 O41 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Working Paper: Heterogeneity in the Internationalization of R&D: Implications for Anomalies in Finance and Macroeconomics (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:26:y:2018:i:c:p:132-138

DOI: 10.1016/j.frl.2017.12.014

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