A new method for constructing R&D capital stocks is proposed and tested. Following Schumpeter, the development of R&D capital stocks is modelled as a process of creative destruction. Newly generated knowledge is assumed not only to add to the existing R&D capital stocks but also, by displacing...

The entry and success of open source software (OSS), for example, Linux's entry into the operating systems market, has fundamentally changed industry structures in the software business. In this paper we explore the process of OSS innovation and highlight the impact of increased competition and...

This paper investigates Samuelson's (JEP, 2004) argument that technical progress of the trade partner may hurt the home country. We illustrate this prospect in a simple Ricardian model for situations with outward knowledge spillovers. Within this framework Samuelson's Act II effects may occur....

This paper proposes a new method for constructing R&D capital stocks developed to avoid the common assumption of a constant rate of knowledge depreciation, which implies wear and tear of knowledge. The method models the development of R&D capital stocks as a process of creative destruction...

National science and technology (S&T) systems are mentioned, in politics as well as in science, as a condition for the competitiveness of domestic high technology industries. An active S&T policy has, therefore, great importance for governments. Eastern European countries see, in an active S&T...