Chapter 3 Horizontal Innovation in the Theory of Growth and Development

We analyze recent contributions to growth theory based on the model of expanding variety of Romer [Romer, P. (1990). “Endogenous technological change”. Journal of Political Economy 98, 71–102]. In the first part, we present different versions of the benchmark linear model with imperfect competition. These include the “lab-equipment” model, “labor-for-intermediates” and “directed technical change”. We review applications of the expanding variety framework to the analysis of international technology diffusion, trade, cross-country productivity differences, financial development and fluctuations. In many such applications, a key role is played by complementarities in the process of innovation.

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Year of publication:	2005
Authors:	Gancia, Gino ; Zilibotti, Fabrizio
Published in:	Handbook of economic growth ; 1A. - Amsterdam : Elsevier, ISBN 0-08-046113-1. - 2005, p. 111-170
Subject:	appropriate technology \| complementarity \| cycles \| convergence \| directed technical change \| endogenous growth \| expanding variety \| financial development \| imperfect competition \| integration \| innovation \| intellectual property rights \| imitation \| knowledge \| learning \| patents \| technical change \| trade \| traps \| Endogenes Wachstumsmodell \| Endogenous growth model \| Immaterialgüterrechte \| Intellectual property rights \| Technischer Fortschritt \| Technological change \| Theorie \| Theory \| Innovation \| Patent \| Technologietransfer \| Technology transfer \| Imitationsstrategie \| Imitation strategy \| Unvollkommener Wettbewerb \| Imperfect competition \| Angepasste Technologie \| Appropriate technology