Innovations, Patent Races, and Endogenous Growth

Joseph Zeira

Working Paper Series from Harvard University, John F. Kennedy School of Government

Abstract: This paper presents a model of innovations and economic growth, which departs from standard endogenous growth models by assuming that the set of potential projects for innovation in each period is limited. The model differs in a number of results from former endogenous growth models. First, it explains patent races, where many research teams search for the same potential innovation. Second, the rate of growth of the economy is bounded and does not rise too much with the scale of the economy. Namely, the model gives rise to a non-linear relationship between the size of the R&D sector and the rate of growth. Third, R&D is Pareto-inefficient, as there are too many research teams searching for the same breakthrough. This problem increases with scale. Fourth, concentration of R&D by monopolistic firms is explained in this model by risk aversion.

Date: 2002-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://economics.yale.edu/sites/default/files/file ... ics/zeira-030304.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://economics.yale.edu/sites/default/files/files/Workshops-Seminars/Macroeconomics/zeira-030304.pdf [301 Moved Permanently]--> https://economics.yale.edu/sites/default/files/files/Workshops-Seminars/Macroeconomics/zeira-030304.pdf)

Related works:
Journal Article: Innovations, patent races and endogenous growth (2011)
Working Paper: Innovations, Patent Races and Endogenous Growth (2003)
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:ecl:harjfk:rwp02-047

Access Statistics for this paper

More papers in Working Paper Series from Harvard University, John F. Kennedy School of Government Contact information at EDIRC.
Bibliographic data for series maintained by ().