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Binomial R&d Races And Growth

Author

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  • John Hartwick

Abstract

In each period, we have an R&D race among N competitive R&D firms, each withprobability π of discovering a successful new technique for producing an intermediategood used in producing the economy's final consumption good. The winner of a raceearns a monopoly profit over a generally uncertain interval. Each R&D firm facesdistinctive "lottery" and "duration" uncertainty in each period. Numerical examplesillustrate the growth behavior of the economy linked to the R&D sector.

Suggested Citation

  • John Hartwick, 2004. "Binomial R&d Races And Growth," Working Paper 1022, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:1022
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    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1022.pdf
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    References listed on IDEAS

    as
    1. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    2. Hartwick, John M., 1991. "Patent races optimal with respect to entry," International Journal of Industrial Organization, Elsevier, vol. 9(2), pages 197-207, June.
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    More about this item

    Keywords

    binomial R&D race; growth;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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