This paper addresses the question of whether government procurement can work as a de facto innovation policy tool. We … develop an endogenous growth model with quality-improving innovation that incorporates industries with heterogeneous … innovation sizes. Government demand in high-tech industries increases the market size in these industries and, with it, the …

This paper investigates the relevance of government purchasing behavior for innovation-based economic growth. We … incentive for private innovation activities. In contrast to the standard Schumpeterian growth framework, we account for industry … heterogeneity in terms of innovation potential. This extension allows to bring government demand policy within the realm of the …