Yin, Xiangkang; Zuscovitch, Ehud - Department of Economics and Finance, La Trobe Business … - 1999
endogenously-determined innovations. Upstream firms in the model "produce" drastic innovation, which turns out brand new technology … and obsolescences the existing technology used by downstream firms that specialize in final goods production. After the … downstream firms adopt the new technology, they can improve it further by their incremental innovations. …