We extend the basic Schumpeterian endogenous growth model by allowing incumbents to undertake innovations to improve their products, while entrants engage in more “radical” innovations to replace incumbents. Our model provides a tractable framework for the analysis of growth driven by both...

Recent empirical studies suggest a need for a ?exible patent regime responding to industry characteristics. In practice, sector-speci?c modi?cations of patent strength already exist but lack theoretical foundation. This paper intends to make up for this neglect by scrutinizing in what direction...

We study how exploration versus exploitation innovations impact economic growth through a tractable endogenous growth framework that contains multiple innovation sizes, multiproduct firms, and entry/exit. Firms invest in exploration R&D to acquire new product lines and exploitation R&D to...

We study how exploration versus exploitation innovations impact economic growth through a tractable endogenous growth framework that contains multiple innovation sizes, multi-product firms, and entry/exit. Firms invest in exploration R&D to acquire new product lines and exploitation R&D to...

In this paper, we have presented a generalization of Bucci's (2003) model in which have disentangled the monopolistic mark-up in the intermediate goods sector, the intermediate goods share in the final output and the returns to specialization in order to have a better measurement of competition....

The paper proposes a new model of development to describe a process of structural change of a dual economy. By introducing a novel sectoral division of the economic system into a low and a high-tech sector, the model builds on previous formulations and formalizes both a structure and a process...

The influence of product market competition on growth is re-considered by developing an extension of the basic Romerian model of horizontal innovation. We find that the relationship between competition and growth is inverse-U shaped, provided that the non-accumulable factor input is employed in...

The influence of product market competition on growth is reconsidered by developing an extension of the basic Romerian model of horizontal product innovation. We find that the relationship between competition and growth is inverse-U shaped, provided that the non accumulated factor input (e.g....

This paper overviews the main interactions between product market competition and long run growth.We focus on the first generation of R&D-based growth models and keep distinguished the vertical from the horizontal differentiation approaches. Our main objective is to study why these two branches...

This paper studies the economic determinants of the inter-sectoral allocation of skills within an R&Dbased growth model with human capital accumulation and imperfect competition. Using an aggregateR&D technology displaying constant returns to scale in human capital, I find that steady-state...