R&D, innovation spillover and business cycles
Uluc Aysun () and
Zeynep Yom ()
No 2019-04, Working Papers from University of Central Florida, Department of Economics
This paper shows that technology shocks have the largest impact on economies when industries adopt innovations of other industries at a high rate, if costs of adopting new technologies and adjusting R&D expenditures are low, and if innovators face a high degree of competition. It is not the level but the spillover of innovations across industries that is the key determinant of these findings. Under the conditions mentioned above, R&D becomes less procyclical and smoother along the business cycle yet R&D driven innovations have a larger impact on output since these innovations spillover at a higher rate. These inferences are drawn from a dynamic stochastic general equilibrium framework describing a real economy with endogenous growth. The latter feature allows us to infer the welfare implications of R&D processes.
Keywords: Research and development; spillover effects; endgenous growth (search for similar items in EconPapers)
JEL-codes: E30 E32 O30 O33 (search for similar items in EconPapers)
Pages: 42 Pages
New Economics Papers: this item is included in nep-dge, nep-ino, nep-mac, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://economics.itweb.ucf.edu/workingpapers/2019-04UA.pdf Full text (application/pdf)
Working Paper: R&D, innovation spillover and business cycles (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cfl:wpaper:2019-04ua
Access Statistics for this paper
More papers in Working Papers from University of Central Florida, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by John Paul ().