Akcigit, Ufuk; Kerr, William R. - Census Bureau, Department of Commerce - 2012
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 … exploration R&D does not scale as strongly with firm size as exploitation R&D. The resulting framework conforms to many …