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This paper is an exercise in comparative institutional analysis, asking what kinds of arrangements most facilitate innovation. After identifying pervasive market failures in innovation, it explains why those associated with the Nordic model may be particularly conducive to innovation, and...
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It concludes by constructing a simple model in which knowledge flows slowly across national borders but moves easily within borders. We show there is a leadership-followership equilibrium, in which some countries are leaders, others are followers. Contrary to Solow's analysis, there need not be...
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This paper analyzes the gradual shift in the technological paradigm of an economy as it approaches the world technology …. The transitional dynamics of the model shows that there exists a steady state distance from the world frontier that … a regime carrying out only imitation of world technologies …
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