Dinopoulos, Elias; Waldo, Douglas - In: Journal of Economic Growth 10 (2005) 2, pp. 135-157
The paper develops a general-equilibrium model of scale-invariant Schumpeterian (R&D-based) growth. New higher-quality products are discovered through stochastic and sequential R&D races in each industry. The market share of an R&D race winner increases gradually and is governed by an...