We examine the role of latecomers’ optimal resource allocation between innovation and imitation in latecomers’ catch … leadership change. The results suggest that one-sided dependency upon either imitation or innovation deters technological … makes imitation a more effective strategy compared to innovation; in addition, while a higher level of cumulativeness tends …

technological progress. Innovation and imitation are strategic substitutes and exhibit negative feedback. Endogenous technological … innovators and free imitators, and study the endogenous interplay of innovation decisions, market price dynamics and … change is the cumulative outcome of innovation decisions. There are three scenarios: market breakdown, Schumpeterian rents …

imitate instead of concurrently investing in innovation, which alleviates competitive pressure. In contrast with the classical … incentives to quickly develop new technologies, which, ultimately, reduces the pace and profits of imitation. Our theoretical …