Growth Through Heterogeneous Innovations
Ufuk Akcigit () and
William Kerr ()
No 16443, NBER Working Papers from National Bureau of Economic Research, Inc
We study how exploration versus exploitation innovations impact economic growth through a tractable endogenous growth framework that contains multiple innovation sizes, multi-product firms, and entry/exit. Firms invest in exploration R&D to acquire new product lines and exploitation R&D to improve their existing product lines. We model and show empirically that exploration R&D does not scale as strongly with firm size as exploitation R&D. The resulting framework conforms to many regularities regarding innovation and growth differences across the firm size distribution. We also incorporate patent citations into our theoretical framework. The framework generates a simple test using patent citations that indicates that entrants and small firms have relatively higher growth spillover effects.
JEL-codes: L16 O31 O33 O41 (search for similar items in EconPapers)
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Published as Ufuk Akcigit & William R. Kerr, 2018. "Growth through Heterogeneous Innovations," Journal of Political Economy, vol 126(4), pages 1374-1443.
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Working Paper: Growth through Heterogeneous Innovations (2016)
Working Paper: Growth through heterogeneous innovations (2013)
Working Paper: Growth Through Heterogeneous Innovations (2012)
Working Paper: Growth through Heterogeneous Innovations (2010)
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