Technological progress as a major source of economic development stems from the interaction of two types of innovations, drastic and incremental. While the former sets the fundamental pace of economic progress by redefining production possibilities as Schumpeter strongly emphasized, the latter...

This paper establishes a model, where up-stream firms 'produce' drastic innovations and down-stream firms specialize in final goods production. A drastic innovation obsolesces the existing technology but down-stream firms can improve it by their incremental innovations. The economy develops in...

Israel offers contingent subsidies to selected industrial R&D projects, with the purpose of creating high-quality jobs, reducing the trade deficit, increasing productivity and promoting growth. In 1987-94, 1,200 firms received $1,400 million of subsidies in support of $3,500 million of R&D (in...

[fre] Aux mouvements longs de l'activité économique correspondent très clairement des technologies spécifiques. La théorie schumpeterienne, bien que centrée sur la dynamique de l'innovation, ne propose pas une analyse économique explicite du processus de développement des technologies....