Zeppini, Paolo; den Bergh, Jeroen C.J.M. van - In: Structural Change and Economic Dynamics 24 (2013) C, pp. 141-156
The notion of dynamic, endogenous diversity and its role in theories of investment and technological innovation is … addressed. We develop a formal model of an innovation arising from the combination of two existing modules, with the objective … innovation and returns to scale. We derive conditions for optimal diversity under different regimes of returns to scale …