IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v8y1999i3p225-251.html
   My bibliography  Save this article

Competition-Led Endogenous Growth With Localized Technological Change

Author

Listed:
  • Edoardo Gaffeo

Abstract

This paper presents an imperfect competition framework where growth is described as successful R&D investments in decreasing production-cost technologies. Innovation and imitation processes are modelled as activities requiring different amounts of investment, whose outcome is uncertaint both as regards the time it takes to occur and the amount of effective increase in productivity it allows. Furthermore, technological change is governed by localized spillovers, so that it can be analytically treated using the machinery of Markovian random fields. Preliminary results obtained through simulation exercises and a 'Mean Field' approximation allow us to evaluate how alternative assumptions on the nature of localization of technological change affect the market structure and the rate of growth of the average productivity of an imperfectly competitive economy. Hence, it is possible to provide some 'micro' insights to the growing macroeconomic literature dealing with local interaction among producers.

Suggested Citation

  • Edoardo Gaffeo, 1999. "Competition-Led Endogenous Growth With Localized Technological Change," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(3), pages 225-251.
    • Handle: RePEc:taf:ecinnt:v:8:y:1999:i:3:p:225-251
    DOI: 10.1080/10438599900000010
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/10438599900000010
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10438599900000010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Brock, W.A. & Durlauf, S.N., 1995. "Discrete Choice with Social Interactions I: Theory," Working papers 9521, Wisconsin Madison - Social Systems.
    2. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, November.
    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. Uwe Cantner & Martin Kalthaus & Matthias Menter & Pierre Mohnen, 2023. "Global knowledge flows: characteristics, determinants, and impacts," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 32(5), pages 1063-1076.
    2. Heijs, Joost, 2003. "Freerider behaviour and the public finance of R&D activities in enterprises: the case of the Spanish low interest credits for R&D," Research Policy, Elsevier, vol. 32(3), pages 445-461, March.
    3. Steven N. Durlauf, 1996. "Statistical Mechanics Approaches to Socioeconomic Behavior," NBER Technical Working Papers 0203, National Bureau of Economic Research, Inc.
    4. José Monteiro-Barata, 2005. "Innovation in the Portuguese Manufacturing Industry: Analysis of a Longitudinal Company Panel," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 11(3), pages 301-314, August.
    5. Alessandro Muscio, 2007. "THE IMPACT OF ABSORPTIVE CAPACITY ON SMEs' COLLABORATION," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(8), pages 653-668.
    6. Mark Knell & Simone Vannuccini, 2022. "Tools and concepts for understanding disruptive technological change after Schumpeter," Jena Economics Research Papers 2022-005, Friedrich-Schiller-University Jena.
    7. Andre Nassif & Carmem Aparecida Feijo & Eliane Araújo, 2016. "Structural change, catching up and falling behind in the BRICS: A comparative analysis based on trade pattern and Thirlwall’s Law," PSL Quarterly Review, Economia civile, vol. 69(279), pages 373-421.
    8. Ajay Thutupalli & Michiko Iizuka, 2016. "Catching-up in agricultural innovation: the case of Bacillus thuringiensis cotton in India," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(6), pages 923-940.
    9. Jaewon Lim & Changkeun Lee & Euijune Kim, 2015. "Contributions of human capital investment policy to regional economic growth: an interregional CGE model approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(2), pages 269-287, December.
    10. André Lorentz & Maria Savona, 2009. "Evolutionary micro-dynamics and changes in the economic structure," Springer Books, in: Uwe Cantner & Jean-Luc Gaffard & Lionel Nesta (ed.), Schumpeterian Perspectives on Innovation, Competition and Growth, pages 137-160, Springer.
    11. Vialle, Pierre & Song, Junjie & Zhang, Jian, 2012. "Competing with dominant global standards in a catching-up context. The case of mobile standards in China," Telecommunications Policy, Elsevier, vol. 36(10), pages 832-846.
    12. Jeffrey T. Macher & Barak D. Richman, 2004. "Organisational Responses To Discontinuous Innovation: A Case Study Approach," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 87-114.
    13. Rossana Galli, 1997. "Is There Long Run Industrial Convergence in Europe?," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(3), pages 333-368.
    14. Flemming Sørensen & Jan Mattsson, 2016. "Speeding Up Innovation: Building Network Structures For Parallel Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-30, February.
    15. Anna Kadeřábková, 2003. "Struktura a výkonnost technologicky náročného obchodu kandidátských zemí [Structure and performance of technology intensive trade]," Politická ekonomie, Prague University of Economics and Business, vol. 2003(2), pages 173-195.
    16. Jeroen van den Bergh & John Gowdy, 2000. "Evolutionary Theories in Environmental and Resource Economics: Approaches and Applications," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(1), pages 37-57, September.
    17. Robin Cowan & William Cowan & G.M. Peter Swann, 2004. "Waves in consumption with interdependence among consumers," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(1), pages 149-177, February.
    18. Bazhal, Iurii, 2014. "Industrial policy under Neo-Schumpeterian concept of structural technological dynamics: Case of Ukraine," MPRA Paper 67434, University Library of Munich, Germany, revised 24 Oct 2015.
    19. Elias L. Khalil, 1996. "Kenneth Boulding: Ecodynamicist or Evolutionary Economist?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 19(1), pages 83-100, September.
    20. Andre Lorentz & Tommaso Ciarli & Maria Savona & Marco Valente, 2019. "Structural Transformations and Cumulative Causation: Towards an Evolutionary Micro-foundation of the Kaldorian Growth Model," Working Papers of BETA 2019-15, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

    More about this item

    Keywords

    Heterogeneity; Schumpeterian hypothesis; Localized technological change; Local interaction JEL Classification: C60; L22; O33; O40;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    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:taf:ecinnt:v:8:y:1999:i:3:p:225-251. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    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.