Growth Through Heterogeneous Innovations

Ufuk Akcigit and William Kerr

No 16443, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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)
Date: 2010-11
New Economics Papers: this item is included in nep-cse, nep-ent, nep-ino, nep-ipr and nep-pr~
Note: EFG PR
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Citations: View citations in EconPapers (122)

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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Related works:
Journal Article: Growth through Heterogeneous Innovations (2018)
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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