This paper examines empirically the relationship between innovation and market structure within a simultaneous framework at the industry level of aggregation. We use a model in which R&D affects both, demand and cost conditions. An optimization process leads to optimal industry R&D expenditure...

Based on a standard idea-based model of endogenous growth we test the hypothesis that regional innovative activity is path-dependent, and investigate the geographical scope of knowledge spillovers. Using data for West-German regions, two alternative indicators of the stock of knowledge are...

We provide steps towards a welfare analysis of a two-country endogenous growth model where a relatively small follower absorbs part of the knowledge generated in the leading country. To solve a suitably defined infinite-horizon dynamic optimization problem a specialized version of the Pontryagin...