Lucke, Dorothea; Schröder, Philipp J.H.; Schumacher, Dieter - In: Journal of Economics and Statistics (Jahrbuecher fuer … 225 (2005) 6, pp. 688-698
This note explores the relationship between the price elasticity of demand and the R&D intensity of the product. We introduce the concept of R&D intensity into a standard Dixit-Stiglitz/Krugmann-type setting. R&D activity is treated as a ficed cost of production. Within this framework, sectors...