scholarly journals Pollution Externalities in a Schumpeterian Growth Model

2010 ◽  
Author(s):  
Simon Koesler
Keyword(s):  
Growth Model ◽  
Schumpeterian Growth

R&D Heterogeneity and the Impact of R&D Subsidies*

2021 ◽  
Author(s):  
Sigurd M⊘lster Galaasen ◽  
Alfonso Irarrazabal
Keyword(s):  
Economic Impact ◽  
Growth Model ◽  
Relative Size ◽  
Schumpeterian Growth ◽  
Size Dependent ◽  
Investment Growth ◽  
The Impact ◽  
D Investment ◽  
Model Fits

Abstract This paper studies the determinants of R&D heterogeneity and the economic impact of R&D subsidies. We estimate a Schumpeterian growth model featuring firms with heterogeneous innovation efficiencies. The model fits well the R&D investment distribution, and the frequency and relative size of R&D performers. Using the model we study the impact of a Norwegian R&D reform targeting firms with R&D spending below a certain threshold. The size-dependent subsidy increases aggregate R&D investment by 11.7%, but reduces growth and welfare. In contrast, a uniform subsidy stimulates investment, growth and welfare.

scholarly journals Effects of patents on the transition from stagnation to growth

2019 ◽  
Vol 33 (2) ◽  
pp. 395-411 ◽  
Author(s):  
Angus C. Chu ◽  
Zonglai Kou ◽  
Xilin Wang
Keyword(s):  
Economic Growth ◽  
Intellectual Property ◽  
Property Rights ◽  
Population Size ◽  
Intellectual Property Rights ◽  
Growth Model ◽  
Patent Protection ◽  
Theoretic Analysis ◽  
Schumpeterian Growth ◽  
Long Run

Abstract This study provides a growth-theoretic analysis of the effects of intellectual property rights on the take-off of an economy from an era of stagnation to a state of sustained economic growth. We incorporate patent protection into a Schumpeterian growth model in which take-off occurs when the population size crosses an endogenous threshold. We find that strengthening patent protection has contrasting effects on economic growth at different stages of development. Specifically, it leads to an earlier take-off but also reduces economic growth in the long run.

Monetary Policy in a Schumpeterian Growth Model with Two R&D Sectors

2021 ◽  
Author(s):  
Chien‐Yu Huang ◽  
Youchang Wu ◽  
Yibai Yang ◽  
Zhijie Zheng
Keyword(s):  
Monetary Policy ◽  
Growth Model ◽  
Schumpeterian Growth

Endogenous fertility and human capital in a Schumpeterian growth model

2012 ◽  
Vol 26 (1) ◽  
pp. 181-202 ◽  
Author(s):  
Angus C. Chu ◽  
Guido Cozzi ◽  
Chih-Hsing Liao
Keyword(s):  
Human Capital ◽  
Growth Model ◽  
Endogenous Fertility ◽  
Schumpeterian Growth

scholarly journals HUMAN CAPITAL AND INNOVATION IN A MONETARY SCHUMPETERIAN GROWTH MODEL

2017 ◽  
Vol 23 (5) ◽  
pp. 1875-1894 ◽  
Author(s):  
Angus C. Chu ◽  
Lei Ning ◽  
Dongming Zhu
Keyword(s):  
Monetary Policy ◽  
Human Capital ◽  
Interest Rate ◽  
Growth Model ◽  
Growth Rates ◽  
Capital Accumulation ◽  
Nominal Interest Rate ◽  
Human Capital Accumulation ◽  
Schumpeterian Growth ◽  
Long Run

This study explores the growth and welfare effects of monetary policy in a scale-invariant Schumpeterian growth model with endogenous human capital accumulation. We model money demand via a cash-in-advance (CIA) constraint on research and development (R&D) investment. Our results can be summarized as follows. We find that an increase in the nominal interest rate leads to a decrease in R&D and human capital investment, which, in turn, reduces the long-run growth rates of technology and output. This result stands in stark contrast to the case of exogenous human capital accumulation in which the long-run growth rates of technology and output are independent of the nominal interest rate. Simulating the transitional dynamics, we find that the additional long-run growth effect under endogenous human capital accumulation amplifies the welfare effect of monetary policy. Decreasing the nominal interest rate from 10% to 0% leads to a welfare gain that is equivalent to a permanent increase in consumption of 2.82% (2.38%) under endogenous (exogenous) human capital accumulation.

TECHNOLOGY ADOPTION DURING THE PROCESS OF DEVELOPMENT: IMPLICATIONS FOR LONG-RUN PROSPECTS

2017 ◽  
Vol 23 (3) ◽  
pp. 907-942 ◽  
Author(s):  
Verónica Mies
Keyword(s):  
Technology Adoption ◽  
Growth Model ◽  
High Growth ◽  
Income Differences ◽  
Schumpeterian Growth ◽  
Developed Economies ◽  
Advanced Technologies ◽  
Long Run ◽  
Growth Equilibrium ◽  
Technology Level

Most papers studying the impacts of technology adoption on income trajectories assume that firms adopt frontier technologies when available. If these technologies are skill intensive, less-developed economies may fail in successfully implementing them and may become trapped in a low-growth equilibrium. Within a Schumpeterian growth model, we show that differences in adoption barriers and incentives to the accumulation of skills produce differences in the technology level that is optimal to adopt. If the economy is not overly distorted, copying nonfrontier technologies helps compensating for the scarcity of skills and increases the likelihood of copying frontier technologies in the long run. If distortions are significant, it may be optimal to copy less-advanced technologies even in the long run. If adoption is not a skill-intensive activity, then copying frontier technologies is always optimal; all economies achieve a high-growth equilibrium and only income differences persist in the long run.

Competition, Imitation, and R&D Productivity in a Growth Model with Industry-Specific Patent Protection

2011 ◽  
Vol 7 (2) ◽  
Author(s):  
Malte Mosel
Keyword(s):  
Reverse Engineering ◽  
Growth Model ◽  
Patent Protection ◽  
Theoretical Foundation ◽  
Growth Models ◽  
Empirical Studies ◽  
Schumpeterian Growth ◽  
Patent Length ◽  
Catch Up ◽  
Set Up

Recent empirical studies suggest a need for a flexible patent regime responding to industry differences. In practice, industry-specific modifications of patent length already exist but lack theoretical foundation. This paper intends to make up for this neglect by scrutinizing in what direction industry characteristics influence optimal patent length. It is found that patents ought to be shorter, the more intense competition, the higher R&D productivity, and the more intricate reverse engineering in an industry are. Unlike similar Schumpeterian growth models, this model assumes Cournot competition and introduces an empirically substantiated measure of industry differences in the ability to catch up with a technological leader. It is found that for most empirically plausible cases the familiar inverted-U relation between patent length and growth carries over to the Cournot set-up.

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