Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/170526
Authors: 
Grüning, Patrick
Year of Publication: 
2017
Series/Report no.: 
SAFE Working Paper Series 185
Abstract: 
Empirical evidence suggests that investments in research and development (R&D) by older and larger firms are more spread out internationally than R&D investments by younger and smaller firms. In this paper, I explore the quantitative implications of this type of heterogeneity by assuming that incumbents, i.e. current monopolists engaging in incremental innovation, have a higher degree of internationalization in their R&D technologies than entrants, i.e. new firms engaging in radical innovation, in a two-country endogenous growth general equilibrium model. In particular, this assumption allows the model to break the perfect correlation between incumbents' and entrants' innovation probabilities and to match the empirical counterpart exactly.
Subjects: 
Heterogeneous innovation
Technology spillover
Endogenous growth
Creative destruction
International finance
JEL: 
E22
F31
G12
O30
O41
Document Type: 
Working Paper

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