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
Abstract:
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
Date: 2019-10
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:
Downloads: (external link)
https://economics.itweb.ucf.edu/workingpapers/2019-04UA.pdf Full text (application/pdf)
Related works:
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)
HTML/Text
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
Bibliographic data for series maintained by Uluc Aysun ().