A number of market failures have been associated with R&D investments and significant amounts of public money have been spent on programs to stimulate innovative activities. In this paper, we review some recent microeconometric studies evaluating effects of government-sponsored commercial R&D....

Economists, in particular Bresnahan and Trajtenberg (1995), have recently drawn attention to the importance of generic or general purpose technologies (GPTs) and their significance for economic growth. An interesting part of this research identifies coordination problems in the introduction of...

The capacity investment by a new firm into an established market is explored in a repeated price game. If the entrant expects collusion to prevail upon entry, it may not practice "judo economics" but instead choose to install enough capacity to serve the entire market. This occurs when collusion...

Network externalities describe the phenomenon that a good becomes more valuable to each user the more other consumers use the same of a compatible product. Whereas most of the recent literature on network effects has focused on the adoption of products, this paper shows that network...

This paper focuses on the location effects of preferential trade areas (PTA) on non-members. More specifically, using a CGE model calibrated to real data, it focuses on the impact of tighter European integration on outsider regions. We argue that because theoretical models analysing PTAs have...

The paper uses a full-scale CGE-model -calibrated on 1992 data- to investigate the effects of European integration on the location of industrial production. Our results reveal large differences among individual industries.

We develop and econometrically estimate a model of the location of industries across countries. The model combines factor endowments and geographical considerations, and shows how industry and country characteristics interact to determine the location of production.

This paper presents an endogenous growth model where it is endogenously determined whether entrepreneurs in the poor East choose to innovate or to imitate goods from the rich West. It is shown that we have a unique equilibrium with imitation when trade is relatively expensive, in which case the...

Why is there apparently a positive correlation between saving and trade liberalization, in particular for the most successful developing countries? Despite tremendous research efort this puzzle is to a large extent still unresolved. In this general equilibrium model we show one channel which may...