Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212268
Authors: 
Akcigit, Ufuk
Kerr, William R.
Year of Publication: 
2013
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 28/2013
Abstract: 
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.
Subjects: 
Endogenous Growth
Innovation
Exploration
Exploitation
Research and Development
Patents
Citations
Scientists
Entrepreneurs
JEL: 
O31
O33
O41
L16
Persistent Identifier of the first edition: 
ISBN: 
978-952-6699-49-3
Document Type: 
Working Paper

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