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R&D POLICY IN THE ECONOMY WITH STRUCTURAL CHANGE AND HETEROGENEOUS SPILLOVERS

Published online by Cambridge University Press:  12 July 2019

Anton Bondarev
Anton Bondarev*
Affiliation:
Xi’an Jiaotong-Liverpool University
*
Address correspondence to: Anton Bondarev, International Business School Suzhou, Xi’an Jiaotong-Liverpool University, 8, Chongwen Road, 215123 Suzhou, People’s Republic of China, e-mail: anton.bondarev@xjtlu.edu.cn
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Abstract

This paper develops an endogenous growth model with doubly differentiated R&D being the growth engine. The model incorporates dynamic structural change and heterogeneous knowledge spillovers. As a result, decentralized economy may exhibit non-monotonic growth paths and declining R&D productivity. Conditions on the knowledge spillover operator granting the existence of balanced growth for first-best and market economies are obtained. Different regulation tools helpful in achieving the sustainable path and their limits are studied.

Keywords

Endogenous Structural ChangeKnowledge SpilloversDynamic StabilityGovernment RegulationSustainable Growth
Type
Articles
Information
Macroeconomic Dynamics , Volume 25 , Issue 5 , July 2021 , pp. 1247 - 1266
Copyright
© Cambridge University Press 2019

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Footnotes

This research is part of the activities of SCCER CREST (Swiss Competence Center for Energy Research), which is financially supported by the Swiss Commission for Technology and Innovation (CTI) under contract KTI.2014.0114. Preliminary version of this paper has been presented at the conference “Finance and Growth in the Aftermath of the Crisis” in Milan. Author thanks the participants of the conference and H. Dawid in particular for their helpful comments.

References

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