Abstract
The article presents a model of endogenous innovation and growth, in which technological change is path dependent. The historical pattern of technological development plays a central role in determining the pace of future technological change. Path dependence is explained using a distinction between fundamental and secondary knowledge. The economy moves endogenously between periods of drastic and nondrastic innovation. Technological lock-in is shown to be a special case of path dependence. The model provides a rationale for cycles in technological leadership. This rationale exists in equilibria with positive levels of fundamental research and in a world with no imitation.
Original language | English (US) |
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Pages (from-to) | 1215-1248 |
Number of pages | 34 |
Journal | International Economic Review |
Volume | 43 |
Issue number | 4 |
DOIs | |
State | Published - Nov 2002 |
Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics