TY  - GEN
AB  - This paper combines horizontal and vertical innovations to build an endogenous
growth model that allows for structural change. Older technologies are
continuously replaced by newer ones due to creative destruction and new technologies
appear as a result of horizontal innovations and as a result of consumers’
preferences for variety. We assume fixed operational costs for the manufacturing
sector and an endogenously determined price of the patent for each new technology.
The duration of a patent is not limited but every industry is profitable
only for a certain period of time, thus making the effective time of existence of
the technology endogenous and finite. We demonstrate that such an economy
exhibits constant growth rates that are proportional to the average productivity
growth, despite the ongoing disappearance of older technologies from the industry.
DA  - 2014
DO  - 10.4119/unibi/2915483
KW  - Endogenous growth
KW  - creative destruction
KW  - endogenous structural change
KW  - horizontal innovation
KW  - endogenous patents
LA  - eng
PY  - 2014
SN  - 2196-2723
SP  - 30-
TI  - Endogenous growth and structural change through vertical and horizontal innovations
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29154839
Y2  - 2024-11-22T12:20:16
ER  -