We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A … provides a good fit to the dynamics of firm entry and exit, output and R&D, and its implied elasticities are in the ballpark of ….5% because it deters entry of new high-type firms. On the contrary, substantial improvements (of the order of 5% improvement in …

framework for the analysis of growth driven by both entry of new firms and productivity improvements by continuing firms. Unlike … productivity improvements by incumbents in response to reduced entry, which may outweigh the positive effect of greater creative … destruction. As the model features entry of new firms and expansion and exit of existing firms, it also generates a non …

{private signal} correlated with the underlying state, they exchange information over the induced \textit{communication network} until … some additional conditions, also only if) in the induced communication network most agents are a short distance away from … response, it is an equilibrium when the communication network induces asymptotic learning. Moreover, we contrast equilibrium …