Template-type: ReDif-Paper 1.0
Author-Name: Perilla Jiménez, Juan R.
Author-Name: Ziesemer, Thomas
Author-workplace-name: Macro, International & Labour Economics, Mt Economic Research Inst on Innov/Techn, RS: GSBE MORSE
Title: Technology adoption, innovation policy and catching-up
Abstract: A model is proposed where economic growth is driven by innovation along<br/>the diffusion and adoption of technology from the frontier. Business<br/>innovation investments are related to households savings, which<br/>generates equilibria with low levels of, and equilibria with high levels<br/>of, innovation. Low-level equilibria are unstable. Starting from a<br/>position with low levels of investment and innovation, increasing<br/>investments are associated with high but decreasing dependence on<br/>international technology diffusion. A major objective of policy-making<br/>is to increase investment sufficiently in the lower end to reach the<br/>high level steady state. An economic rationale is provided for the<br/>existence of productivity improving equilibria, where distance to<br/>frontier countries is reduced owing to a tax and subsidy mechanism<br/>designed to boost innovation.
Classification-JEL: c62,o33,o38,o40
Series: UNU-MERIT Working Papers
Creation-Date: 20220721
Number: 2022-024
File-URL: https://cris.maastrichtuniversity.nl/ws/files/106568914/wp2022_024.pdf
File-Format: application/pdf
File-Size: 843957
Handle: Repec:unm:unumer:2022024
DOI: