IDEAS home Printed from https://ideas.repec.org/a/ecj/econjl/v101y1991i408p1214-29.html
   My bibliography  Save this article

Endogenous Product Cycles

Author

Listed:
  • Grossman, Gene M
  • Helpman, Elhanan

Abstract

The authors construct a model of the product cycle featuring endogenous innovation and technology transfer. Competitive entrepreneurs in the industrialized North introduce new products whenever the expected present value of oligopoly profits exceeds the cost of product development. In the middle-income South, entrepreneurs devote resources to learning the production processes that have been developed in the North. The authors study the determinants of the long-run rate of growth of the world economy and the long-run rate of imitation. They also study the effects of exogenous events and of public policy on relative wage rates in the two regions. Copyright 1991 by Royal Economic Society.

Suggested Citation

  • Grossman, Gene M & Helpman, Elhanan, 1991. "Endogenous Product Cycles," Economic Journal, Royal Economic Society, vol. 101(408), pages 1214-1229, September.
    • Handle: RePEc:ecj:econjl:v:101:y:1991:i:408:p:1214-29
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0013-0133%28199109%29101%3A408%3C1214%3AEPC%3E2.0.CO%3B2-7&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Grossman, Gene M & Helpman, Elhanan, 1989. "Product Development and International Trade," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1261-1283, December.
    2. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    3. Dollar, David, 1986. "Technological Innovations, Capital Mobility, and the Product Cycle inNorth-South Trade," American Economic Review, American Economic Association, vol. 76(1), pages 177-190, March.
    4. Jensen, Richard & Thursby, Marie, 1986. "A strategic approach to the product life cycle," Journal of International Economics, Elsevier, vol. 21(3-4), pages 269-284, November.
    5. Segerstrom, Paul S & Anant, T C A & Dinopoulos, Elias, 1990. "A Schumpeterian Model of the Product Life Cycle," American Economic Review, American Economic Association, vol. 80(5), pages 1077-1091, December.
    6. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-266, April.
    7. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Long, N.V. & Wong, K.Y., 1996. "Endogenous Growth and International Trade: A Survey," Working Papers 96-07, University of Washington, Department of Economics.
    2. Helpman, E., 1989. "The Non-Competitive Theory Of International Trade And Trade Policy," Papers 18-89, Tel Aviv.
    3. Liu, Ying & Wang, Zhe & Yin, Xiaopeng, 2016. "Economic integration, product cycles and regime effects," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 275-283.
    4. Stefan Lachenmaier & Ludger Wößmann, 2006. "Does innovation cause exports? Evidence from exogenous innovation impulses and obstacles using German micro data," Oxford Economic Papers, Oxford University Press, vol. 58(2), pages 317-350, April.
    5. Lai, Edwin L. C., 1995. "The product cycle and the world distribution of income A reformulation," Journal of International Economics, Elsevier, vol. 39(3-4), pages 369-382, November.
    6. Stefan Lachenmaier & Ludger Woessmann, 2004. "Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles," CESifo Working Paper Series 1178, CESifo.
    7. Lu, Chia-Hui, 2007. "Moving up or moving out? A unified theory of R&D, FDI, and trade," Journal of International Economics, Elsevier, vol. 71(2), pages 324-343, April.
    8. Edwin L.-C. Lai, 2008. "Globalization of production and the technology transfer paradox," Working Papers 0810, Federal Reserve Bank of Dallas.
    9. Tomasz Brodzicki & Dorota Ciolek, 2016. "Creativity pays off. Innovation, innovation strategy, and internationalization," Working Papers 1601, Instytut Rozwoju, Institute for Development.
    10. Fernandes, Glaucia & Perobelli, Fernanda Finotti Cordeiro & Brandão, Luiz Eduardo T., 2016. "A model for valuing new technologies under a pull incentives environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 482-493.
    11. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Centre for Economic Performance, LSE.
    12. Alcalá, Francisco & Solaz, Marta, 2018. "International Relocation of Production and Growth," CEPR Discussion Papers 13422, C.E.P.R. Discussion Papers.
    13. Stadler, Manfred, 2015. "Innovation, industrial dynamics and economic growth," University of Tübingen Working Papers in Business and Economics 84, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    14. Acemoglu, Daron & Gancia, Gino & Zilibotti, Fabrizio, 2012. "Competing engines of growth: Innovation and standardization," Journal of Economic Theory, Elsevier, vol. 147(2), pages 570-601.3.
    15. Alison Butler, 1990. "Endogenous innovation in a north-north model of the product cycle," Working Papers 1990-007, Federal Reserve Bank of St. Louis.
    16. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders and Product Cycles," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 557-586.
    17. Marco Di Cintio, Marco Di Cintio & Sucharita Ghosh, Sucharita Ghosh & Emanuele Grassi, Emanuele Grassi, 2016. "Firm Employment Growth, R&D Expenditures and Exports," ETA: Economic Theory and Applications 240750, Fondazione Eni Enrico Mattei (FEEM).
    18. Yuxiang Zou & Tai-Liang Chen, 2018. "Industrial heterogeneity and international product cycles," Journal of Economics, Springer, vol. 125(1), pages 1-25, September.
    19. Chien‐Fu Chou & Oz Shy, 1991. "A Model of Technology Gap, Product Cycle, and the Process of Catching up Between the North and the South," The Economic Record, The Economic Society of Australia, vol. 67(3), pages 217-226, September.
    20. van Elkan, Rachel, 1996. "Catching up and slowing down: Learning and growth patterns in an open economy," Journal of International Economics, Elsevier, vol. 41(1-2), pages 95-111, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:101:y:1991:i:408:p:1214-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.