Path dependence, endogenous innovation, and growth

Stephen Redding

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper presents a model of endogenous innovation and growth, in which technological change is path dependent. The historical pattern of technological development plays a central role in determining the pace of future technological change. Path dependence is explained using a distinction between fundamental and secondary knowledge. The economy moves endogenously between periods of drastic and nondrastic innovation. Technological lock-in is shown to be a special case of path dependence. The model provides a rationale for cycles in technological leadership. This rationale exists in equilibria with positive levels of fundamental research and in a world with no imitation.

Keywords: endogenous innovation; fundamental knowledge; path dependence; research and development (R&D); technological lock-in. (search for similar items in EconPapers)
JEL-codes: O31 O40 (search for similar items in EconPapers)
Date: 2002-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Published in International Economic Review, November, 2002, 43(4), pp. 1215-1248. ISSN: 1468-2354

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Related works:
Journal Article: Path Dependence, Endogenous Innovation, and Growth (2002)
Working Paper: Path Dependence, Endogenous Innovation and Growth (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:208

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