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Parametric interdependence, learning-by-doing, and industrial structure

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Listed:
  • William Martin Tracy

    (Rensselaer Polytechnic Institute)

  • M. V. Shyam Kumar

    (Rensselaer Polytechnic Institute)

  • William Paczkowski

    (Rensselaer Polytechnic Institute)

Abstract

We explore the proposition that parametric interdependence makes learning-by-doing a nondeterministic, path-dependent process. The implications of our model challenge two conventional beliefs about the relationships between industrial structure, spillovers, and learning-by-doing. First, we challenge the belief that the monopolistic industrial structure always maximizes learning-by-doing gains when there are no spillovers. Second, we challenge the belief that increasing spillovers unambiguously increases welfare when learning-by-doing drives innovation.

Suggested Citation

  • William Martin Tracy & M. V. Shyam Kumar & William Paczkowski, 2013. "Parametric interdependence, learning-by-doing, and industrial structure," Computational and Mathematical Organization Theory, Springer, vol. 19(4), pages 580-600, December.
    • Handle: RePEc:spr:comaot:v:19:y:2013:i:4:d:10.1007_s10588-012-9143-9
    DOI: 10.1007/s10588-012-9143-9
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