I uncover a new force towards increasing dominance. The new effect results from the strategic choice of covariance in races. I assume that players must choose not the amount of resources to spend but how to allocate those resources. I show that the laggard has an incentive to chose a different...

Although research and development is widely considered to be an important source of growth, relatively little is known about how its effects differ across industries. This is mainly because much reseach on the effect of R&D has used either cross-section or time-series data and the remainder has...

This paper aims to contribute to the new growth theory with a model in which the engine of growth is human capital growth. Building on Romer's [1990] model, two new functions are introduced: (1) a specification for the production of new designs that assumes no externalities and no inventions...

Using U.S. input-output data for the period 1958 to 1987, I find strong evidence that industry TFP growth is significantly related to the TFP performance of sypplying sectors, with an elasticity of almost 60 percent.

This paper presents recent trends in the foreign activities of Swedish multinationals. The focus is on the distribution of production and R&D between the MNCs' domestic and foreign units, and the pattern of trade within the firms. Issues concerning entry modes and the importance of information...

We introduce time-dependent rewards into a general framework for analyzing innovative activity among firms with sunk costs of R&D. When firms are identical, innovation is delayed by an increase in the number of firms or a decrease in the size of the reward. When one firm has higher profit...

To study the impact of foreign direct investment (FDI) on innovation, imitation and technology transfer, we introduce FDI into Grossman and Helpman's quality ladders product cycle model, thus allowing technology transfer between countries to occur through both FDI and imitation.

Cet article propose un modele simple de croissance endogene en presence de recherche et developpement (R-D) publique et de R-D privee base sur le modele a variete de biens intermediaires de Barro et Sala- i-Martin. Il procede ensuite a une analyse comparative de deux instruments de la politique...

Risky research projects are, other things being equal, intrinsically harder to monitor than those which are less risky. It is shown using agency theory that a standard cost benefit project analysis which ignores the agency problem will introduce a bias towards excessively risky projects.