Cozzi, G. and Spinesi, L. (2006) 'How much horizontal innovation is consistent with vertical innovation ?', Research in economics., 60 (1). pp. 47-53.
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.
|Keywords:||Schumpeterian growth theory, Horizontal and vertical innovation, Scale effects.|
|Full text:||Full text not available from this repository.|
|Publisher Web site:||http://dx.doi.org/10.1016/j.rie.2005.12.001|
|Record Created:||16 Feb 2010 16:35|
|Last Modified:||20 Aug 2010 12:14|
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