Innovation by Heterogeneous Leaders

Tatsuro Iwaisako and Kazuyoshi Ohki

No 15-30-Rev., Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: We develop a Schumpeterian growth model in which both leaders and followers conduct R&D activities and in which leaders have different quality leads over their followers, determined by a random draw, and thus have different profit flows. We show that leaders with larger quality leads make smaller R&D investments; this result is consistent with the actual behaviors of some previous leader firms such as Sony and Eastman-Kodak. Moreover, we show that subsidizing followers f R&D can promote leaders f aggregate R&D, because promotion of followers f R&D decreases (increases) the number of leaders with larger (smaller) quality leads and smaller (larger) R&D investments.

Keywords: Schumpeterian growth; Heterogeneous leaders; R&D subsidies (search for similar items in EconPapers)
JEL-codes: L16 O31 O38 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2015-11, Revised 2018-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www2.econ.osaka-u.ac.jp/library/global/dp/1530R.pdf (application/pdf)

Related works:
Journal Article: Innovation by Heterogeneous Leaders (2019)
Working Paper: Innovation by Heterogeneous Leaders (2015)
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:osk:wpaper:1530r

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by The Economic Society of Osaka University ().