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Asymptotic growth ratesin knowledge‐exchanging economies

Author

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  • V.F. Borisov
  • G. Hutschenreiter
  • A.V. Kryazhimskii

Abstract

Two ODE models of innovation dynamics based on Grossman and Helpman's endogenousgrowth model with horizontal product differentiation are coupled through knowledge exchange.It is shown that in the coupled model, the steady rates of innovation are asymptotically stabilizedat a unique level higher than the autarky growth rate in each economy. The steady rate ofinnovation common to both countries is positively related to each country's ability to absorbknowledge from abroad. Conditions sufficient for the existence of a steady trajectory areprovided. Copyright Kluwer Academic Publishers 1999

Suggested Citation

  • V.F. Borisov & G. Hutschenreiter & A.V. Kryazhimskii, 1999. "Asymptotic growth ratesin knowledge‐exchanging economies," Annals of Operations Research, Springer, vol. 89(0), pages 61-73, January.
    • Handle: RePEc:spr:annopr:v:89:y:1999:i:0:p:61-73:10.1023/a:1018944127579
    DOI: 10.1023/A:1018944127579
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    Cited by:

    1. Gernot Hutschenreiter & Serguei Kaniovski, 1999. "Technologieströme in der österreichischen Wirtschaft," WIFO Monatsberichte (monthly reports), WIFO, vol. 72(6), pages 419-433, June.
    2. Gernot Hutschenreiter & Serguei Kaniovski, 1999. "Embodied Technology Diffusion in the Austrian Economy," WIFO Studies, WIFO, number 7711, April.
    3. S.A. Reshmin & A.M. Tarasyev & C. Watanabe, 2002. "Optimal Trajectories of the Innovation Process and Their Matching with Econometric Data," Journal of Optimization Theory and Applications, Springer, vol. 112(3), pages 639-655, March.
    4. A. M. Tarasyev & C. Watanabe, 2001. "Optimal Dynamics of Innovation in Models of Economic Growth," Journal of Optimization Theory and Applications, Springer, vol. 108(1), pages 175-203, January.
    5. Michael Peneder & Karl Aiginger & Gernot Hutschenreiter & Markus Marterbauer, 2001. "Structural Change and Economic Growth," WIFO Studies, WIFO, number 20668, April.

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