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Special economic zones can be an effective instrument to promote industrialization if implemented properly in the right context. In China, starting in the 1980s, special economic zones were used as a testing ground for the country's transition from a planned to a market economy, and they are a...
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In this paper, we study the behavior of innovation and imitation among a group of firms in a competitive industry. To … survive, firms have two fundamental choices. They can choose to be innovative firms that develop cost-reducing technology by … their own efforts. Alternatively, they can also choose to be an imitating firm, which simply ¡§steals¡¨ the technology from …
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