Technological innovation requires the gathering of information through a process of searching and learning. We distinguish two different but definitely complementary and overlapping ways through which searching and learning occur. The first exploits the spillover potential that lies in a firm's...

We study the behaviour: of the average aggregate growth rate of an economy, driven by only small idiosyncratic total factor productivity shocks and where investment behaviour at the single plant level follows an (S,s) policy. We assume that in the case of investment (disinvestment) there are...