Endogenous innovation waves and economic growth

Andergassen, Rainer ; Nardini, Franco (2002) Endogenous innovation waves and economic growth. Bologna: Dipartimento di Scienze economiche DSE, p. 17. DOI 10.6092/unibo/amsacta/4850. In: Quaderni - Working Paper DSE (446). ISSN 2282-6483.
Full text available as:
[img]
Preview
Text(pdf)
License: Creative Commons Attribution Non-commercial

Download (323kB) | Preview

Abstract

We propose a simple model where large innovation waves arise from the endogenous propagation of information around sectors. Innovators of each sector invest in internal R&D and in local search for information. We show that depending on the structural parameters of the single sectors, some of the R&D sectors will engage in local search while others will not. Through localised search for information, technology adopted in certain sectors can be adopted also in other sectors, leading to a large technological correlation, and eventually to long ranged innovation waves. We characterise the endogenous balanced growth path of the economy, and the short run fluctuations around it. The model predicts a linear, positive relationship between the short run fluctuations and the long run growth rate. We test this latter relationship and find that we cannot reject the predictions of the model.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Andergassen, Rainer
Nardini, Franco
Keywords
innovation waves, balanced growth rate, aggregate fluctuations, technology diffusion, endogenous growth
Subjects
ISSN
2282-6483
DOI
Deposit date
14 Mar 2016 15:46
Last modified
14 Mar 2016 15:46
URI

Other metadata

Downloads

Downloads

Staff only: View the document

^