Template-type: ReDif-Paper 1.0
Author-Name: Cowan, Robin
Author-Name: Jonard, Nicolas
Author-workplace-name: MERIT
Title: Information Technology and the Dynamics of Joint Innovation
Abstract: We develop a model of an innovative industry to examine how  information technology, by both enhancing matching efficiency and knowledge  sharing, can have an ambiguous effect on the total amount of innovation. We  consider a population of firms holding different knowledge expertise, and  forming partnerships to conduct joint R&D. We assume that bringing together  different expertise has positive value for innovating but also that joint  innovation implies a partial convergence of the partners'' expertise. We study  how the distribution of firms changes and thus how the innovative potential of  the economy evolves. We show that as heterogeneity is used as an input by the  innovative process, the industry must eventually collapse to a unique expertise,  but how fast this takes place depends on the quality of IT. As a result of  falling dispersion, a tension arises between static and dynamic efficiency. JEL  Classification Numbers: C78,O33,O38. 
Keywords: mathematical economics and econometrics ; 
Series: Research Memoranda
Creation-Date: 2004
Number: 014
File-URL: https://unu-merit.nl/publications/rmpdf/2004/rm2004-014.pdf
File-Format: application/pdf
File-Size: 272063
Handle: RePEc:unm:umamer:2004014