implications of this type of heterogeneity by assuming that incumbents, i.e. current monopolists engaging in incremental innovation … innovation, in a two-country endogenous growth general equilibrium model. In particular, this assumption allows the model to … break the perfect correlation between incumbents' and entrants' innovation probabilities and to match the empirical …

enables the model to replicate the empirically rather moderate correlation between the R&D innovation probabilities of …

We study how frictions in learning others' technology, termed "imperfect technology spillovers," impact firm innovation … strategies and the aggregate economy through changes in innovation composition. We develop an endogenous growth model that … generates strategic innovation decisions, where multi-product firms improve their products via own-innovation and enter new …

enables the model to replicate the empirically rather moderate correlation between the R&D innovation probabilities of …

development (R&D) by entrants and, if applicable, incumbents. Regardless of the innovation structure, an increase in consumption … economic growth alongside a welfare loss in the homogeneous innovation model. However, in the heterogeneous innovation model … higher welfare. Only higher capital investment subsidies lead to jointly higher growth and welfare in both innovation models …

, incumbents. With these models at hand, we provide new insights on the interplay of innovation dynamics and fiscal policy. …

, incumbents. With these models at hand, we provide new insights on the interplay of innovation dynamics and fiscal policy …