Innovation, Imitation, and Competition

Created November 2002 with the help of Toshihiko Mukoyama

Introductory reading

Aghion, P. and P. Howitt (1997). A Schumpeterian perspective on growth and competition, in: D. Kreps and K. Wallis, eds. Advances in Economics and Econometrics: Theory and Applications , Vol. 2, 279-317. Cambridge University Press: Cambridge.

Aghion, P. and P. Howitt (1998). Endogenous Growth Theory, Chapter 7. MIT Press: Cambridge.

Barro, R. J. and X. Sala-i-Martin (1995). Economic Growth, Section 6.1.6 and Chapter 8. McGraw-Hill: New York.

Further reading

Aghion, P., N. Bloom, R. Blundell, R. Griffith, and P. Howitt (2002). Competition and innovation: an inverted U relationship. Harvard University.

Aghion, P., M. Dewatripont, and P. Rey (1999). Competition, financial discipline and growth. Review of Economic Studies, 66, 825-852.

Aghion, P., C. Harris, P. Howitt, and J. Vickers (2001). Competition, imitation and growth with step-by-step innovation. Review of Economic Studies, 68, 467-492.

Barro, R. J. and X. Sala-i-Martin (1997). Technical diffusion, convergence, and growth, Journal of Economic Growth, 2, 1-26.

Cheng, L. K. and Z. Tao (1999). The impact of public policies on innovation and imitation: the role of R&D technology in growth models. International Economic Review, 40, 187-207.

Davidson, C. and P. Segerstrom (1998). R&D subsidies and economic growth. RAND Journal of Economics, 29, 548-577.

Grossman, G. and E. Helpman (1991). Innovation and Growth in the Global Economy, Chapters 11 and 12. MIT Press: Cambridge.

Helpman, E. (1993). Innovation, imitation, and intellectual property rights. Econometrica, 61, 1246-1280.

Houser, C. (1998). The role of diminishing returns in neo-Schumpeteran growth theory. Economic Theory, 12, 335-347.

Iwai, K. (2000). A contribution to the evolutionary theory of innovation, imitation, and growth. Journal of Economic Behavior and Organization, 43, 167-198.

Jovanovic, B. and G. M. MacDonald (1994). Competitive diffusion. Journal of Political Economy, 102, 24-52.

Mukoyama, T. (2002). Innovation, imitation, and growth with cumulative technology. Journal of Monetary Economics,

Rustichini, A. and J. A. Schmitz, Jr. (1991). Research and imitation in long-run growth. Journal of Monetary Economics, 27, 271-292.

Segerstrom, P.S. (1991). Innovation, imitation, and economic growth. Journal of Political Economy, 99, 807-827.

Other key references

Arrow, K. (1962). Economic welfare and the allocation of resources for invention, in: Universities-National Bureau Committee for Economic Research, The Rate and Direction of Inventive
, 609-626. Harvard Business School Press: Cambridge.

Blundell, R., R. Griffith and J. Van Reenen (1995). Dynamic count data model of technological innovations. Economic Journal, 105, 333-344.

Cohen, W. M. and R. C. Levin (1989). Empirical studies of innovation and market structure, in: R. Schmalensee and R. D. Willig, eds. Handbook of Industrial Organization, Vol. 2, 1059-1107. North-Holland: Amsterdam.

Cohen, W. M. and D. A. Levinthal (1989). Innovation and learning: the two faces of R&D, Economic Journal, 99, 569-596.

Hoernig, Steffen H. (2003). Asymmetry, Stability and Growth in a Step-by-Step R&D-Race. European Economic Review, April, 47(2), 245-57.

Leibenstein, H. (1966). Allocative efficiency vs. “X-efficiency”. American Economic Review, 56, 392-415.

Mansfield, E., M. Schwartz and S. Wagner (1981). Imitation costs and patents: an empirical study. Economic Journal, 91, 907-918.

Mookherjee, D. and D. Ray (1991). On the competitive pressure created by the diffusion of innovations. Journal of Economic Theory, 54, 124-147.

Nelson, R. and S. Winter (1982). An Evolutionary Theory of Economic Change. Harvard University Press: Cambridge.

Nickell, S. J. (1996). Competition and corporate performance. Journal of Political Economy, 104, 724-746.

Reinganum, J. F. (1989). The timing of innovation: research, development, and
diffusion, in: R. Schmalensee and R. D. Willig, eds. Handbook of Industrial
, Vol. 1, 849-908. North-Holland: Amsterdam.

Schumpeter, J. A. (1950). Capitalism, Socialism and Democracy. Rand
McNally: New York.

Shell, K. (1973). Inventive activity, industrial organization and economic growth. in: J.A. Mirrlees and N. Stern, eds. Models of Economic Growth, 77-100. Macmillan: London.

Spence, M. (1984). Cost reduction, competition, and industry performance, Econometrica, 52, 101-121.

Tang, Paul J. G. and Walde, Klaus (2001). International Competition, Growth and Welfare. European Economic Review, August, 45(8), 1439-59.

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