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Endogenous growth and structural change through vertical and horizontal innovations

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  • Bondarev, Anton
  • Greiner, Alfred

Abstract

This paper combines horizontal and vertical innovations to generate an endogenous growth model allowing for structural change as an endogenous phenomenon. Every industry is profitable only for a limited period of time, making the effective time of existence of the technology endogenous and finite. We find that in such an economy endogenous structural change is the source of ongoing economic growth. Further, the range of existing sectors stays constat as well as growth rates as long as the technologies are symmetric.

Suggested Citation

  • Bondarev, Anton & Greiner, Alfred, 2017. "Endogenous growth and structural change through vertical and horizontal innovations," Working papers 2017/05, Faculty of Business and Economics - University of Basel.
    • Handle: RePEc:bsl:wpaper:2017/05
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    Cited by:

    1. Magnus Henrekson & Dan Johansson & Johan Karlsson, 2024. "To Be or Not to Be: The Entrepreneur in Neo-Schumpeterian Growth Theory," Entrepreneurship Theory and Practice, , vol. 48(1), pages 104-140, January.
    2. Anton Bondarev, 2021. "Games Without Winners: Catching-up with Asymmetric Spillovers," Dynamic Games and Applications, Springer, vol. 11(4), pages 670-703, December.
    3. Kevin Genna & Christian Ghiglino & Kazuo Nishimura & Alain Venditti, 2024. "Knowledge-based structural change," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 78(4), pages 1333-1388, December.
    4. Bondarev, Anton & Krysiak, Frank C., 2021. "Economic development and the structure of cross-technology interactions," European Economic Review, Elsevier, vol. 132(C).
    5. Greiner, Alfred & Bondarev, Anton, 2017. "Optimal R&D investment with learning-by-doing: Multiple steady-states and thresholds," Working papers 2017/06, Faculty of Business and Economics - University of Basel.
    6. Bondarev, Anton, 2018. "Heterogeneous R&D spillovers and sustainable growth: Limits to efficient regulation," Working papers 2018/04, Faculty of Business and Economics - University of Basel.
    7. Sanchez-Carrera Edgar J. & Ille Sebastian & Travaglini Giuseppe, 2021. "Macrodynamic Modeling of Innovation Equilibria and Traps," The B.E. Journal of Macroeconomics, De Gruyter, vol. 21(2), pages 659-694, June.
    8. Bondarev, Anton, 2018. "Does stronger intellectual property rights protection foster structural change? Effects of heterogeneity in innovations," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 26-42.
    9. Bondarev, Anton & Greiner, Alfred, 2017. "Environmental pollution in a growing economy with endogenous structural change," Working papers 2017/03, Faculty of Business and Economics - University of Basel.
    10. Anton Bondarev & Alfred Greiner, 2022. "How ongoing structural change creates a double dividend: outdating of technologies and green growth," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(2), pages 125-160, May.

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    More about this item

    Keywords

    Endogenous Growth; Creative Destruction; Arrow Replacement Effect; Endogenous Structural Change; Horizontal Innovation; Endogenous Patents;
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