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We develop a tractable dynamic model of productivity growth and technology spillovers that is consistent with the … emergence of real world empirical productivity distributions. Firms can improve productivity by engaging in in-house R\&D, or …-growth equilibrium featuring persistent productivity differences even when starting from ex-ante identical firms. The long …
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This paper proposes a reduced form model of dynamic duopoly in the context of heterogeneous innovations framework. Two agents invest into product and process innovations simultaneously. Every newly introduced product has its own dimension of process-improving innovations and there is a continuum...
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