G. Cozzi
How much horizontal innovation is consistent with vertical innovation?
Cozzi, G.; Spinesi, L.
Authors
L. Spinesi
Abstract
R&D-driven growth theory emphasizes vertical and horizontal innovation activities for long run growth. In this paper, we show that the real world co-existence of both innovative activities restricts the admissible laws of motion for horizontal innovation, thereby allowing to test the admissible range of intertemporal horizontal R&D spillovers. Private arbitrage between manufacturing and vertically innovating makes quality improving R&D profitable if and only if the horizontal innovation rate does not exceed the population growth rate. Hence, the mere observation of positive vertical innovation suggests that the number of new sectors has not been increasing faster than population.
Citation
Cozzi, G., & Spinesi, L. (2006). How much horizontal innovation is consistent with vertical innovation?. Research in Economics, 60(1), 47-53. https://doi.org/10.1016/j.rie.2005.12.001
Journal Article Type | Article |
---|---|
Publication Date | Mar 1, 2006 |
Deposit Date | Feb 16, 2010 |
Journal | Research in Economics |
Print ISSN | 1090-9443 |
Electronic ISSN | 1090-9451 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 60 |
Issue | 1 |
Pages | 47-53 |
DOI | https://doi.org/10.1016/j.rie.2005.12.001 |
Keywords | Schumpeterian growth theory, Horizontal and vertical innovation, Scale effects. |
Public URL | https://durham-repository.worktribe.com/output/1523533 |
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