Technological Spillovers and Patterns of Growth with Sector-Specific R&D

Junko Doi and Kazuo Mino

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies a two-sector model of endogenous technical change in which expansion of each production sector is associated with sector-specific R&D investment. It is shown that the pattern of growth is sensitive to the specification of intersectoral technological spillover as well as to the preference structure. If technological spillovers and preferences of consumers are represented by CES functional forms, the balanced-growth equilibrium may not exhibit a well-behaved saddlepoint property: it is possible that the balanced-growth path is locally indeterminate or unstable. In addition, a slight modification of technological spillover effects easily yields multiple balanced-growth paths. In contrast, Cobb-Douglas specifications present a unique and determinate balanced-growth path.

Keywords: R&D based growth; two-sector economy; technological spillover (search for similar items in EconPapers)
JEL-codes: O33 O41 (search for similar items in EconPapers)
Date: 2004-09
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Journal Article: Technological spillovers and patterns of growth with sector-specific R&D (2005)
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