Growth Through Heterogeneous Innovations / Ufuk Akcigit, William R. Kerr.

Format:

Book

Author/Creator:

Akcigit, Ufuk.

Contributor:

National Bureau of Economic Research.

Kerr, William R.

Series:

Working Paper Series (National Bureau of Economic Research) no. w16443.

NBER working paper series no. w16443

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2010.

Summary:

We study how exploration versus exploitation innovations impact economic growth through a tractable endogenous growth framework that contains multiple innovation sizes, multi-product firms, and entry/exit. Firms invest in exploration R&D to acquire new product lines and exploitation R&D to improve their existing product lines. We model and show empirically that exploration R&D does not scale as strongly with firm size as exploitation R&D. The resulting framework conforms to many regularities regarding innovation and growth differences across the firm size distribution. We also incorporate patent citations into our theoretical framework. The framework generates a simple test using patent citations that indicates that entrants and small firms have relatively higher growth spillover effects.

Notes:

Print version record

November 2010.