This paper continues the empirical research line started by Crepon et al. (1998) about the impact of research and development on innovation and innovation on productivity of firms. In this paper we estimate a structural model using Asymptotic Least Squares (ALS) which corrects for selectivity and simultaneity biases taking in consideration the particular characteristics of the available data. W...

Technological progress, the mainspring of long-run economic growth, comes from innovations that generate new products, processes and markets. Innovations in turn are the result of deliberate research and development activities that arise in the course of market competition. These Schumpeterian observations constitute the starting point of that branch of endogenous growth theory built on the met...

This study explores how the rent-seeking behavior of government may impede economic development and delay industrialization. Introducing a to Schumpeterian growth model that features endogenous takeoff, we find more self-interested engages in taxation, which delays economy’s transition from pre-industrial stagnation modern growth. Quantitatively, completely could have delayed industrialization,...

Knowledge management often generates theories that are too general or abstract to be easily testable. In some cases, simulation modeling can help. In this paper we develop an agent based simulation model derived from a conceptual framework, the Information Space or ISpace and use it to explore the differences between a neoclassical and a Schumpeterian information environment. After introducing ...

This paper discusses three key elements of stochastic growth in the Schumpeterian dynamics. These elements comprise the new entry of firms in an industry, the displacement of the old technology by the new and the nonlinear impact of learning by doing on the growth of innovating firms. Each of these elements has important implications for the new theory of endogenous growth. * Department of Econ...

I take a new look at the long-run implications of taxation through the lens of modern Schumpeterian growth theory. I focus on the latest vintage of models that sterilize the scale effect through a process of product proliferation that fragments the aggregate market into submarkets whose size does not increase with the size of the workforce. I show that the following interventions raise welfare:...