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R&D cooperation, innovation, and growth.

Cozzi, G. and Tarola, O. (2006) 'R&D cooperation, innovation, and growth.', Journal of institutional and theoretical economics., 162 (4). pp. 683-701.


This paper presents a standard endogenous growth framework in which the source of growth is represented by vertical innovations. The crucial assumption we introduce is that there is a positive information gap concerning the discovery of innovation. The aim of reducing the information-dissemination lag provides incentives for firms to decide to merge their research efforts. Also, we find that the skilled - unskilled wage gap is strongly related to this phenomenon. We prove that changing antitrust attitudes toward efficiency-motivated mergers in contestable industries may simultaneously explain observed changes in the industry structure, qualitative innovation, wage inequality, and labor-supply composition.

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Record Created:17 Feb 2010 09:50
Last Modified:08 Jun 2012 16:52

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