Chen, Maggie X.; Iyigun, Murat; Maskus, Keith E. - In: Economics of Innovation and New Technology 16 (2007) 6, pp. 451-466
We develop a theoretical model in which the sophistication of technologies improves over time due to research and development (R&D) undertaken by software developers in two sectors. In the commercial sector, R&D intensity is driven by economic incentives, whereas in the sector using the General...