TY  - GEN
AB  - In this paper we analyze an inter-temporal optimization problem of a representative
firm that invests in horizontal and vertical innovations and that faces a
constraint with respect to total R&D spending. We find that there may exist two
different steady-states of the economy when the amount of research spending falls
short of an endogenously determined threshold: one with higher productivities and
less new technologies being developed, and the other with more technologies being
created and lower productivities. Thus, a lock-in effect may arise that, however,
can be overcome by raising R&D spending sufficiently such that the steady-state
becomes unique and the firm produces the whole spectrum of available technologies.
DA  - 2014
DO  - 10.4119/unibi/2915497
KW  - Multiple steady-states
KW  - lock-in
KW  - innovations
KW  - R&D constraint
KW  - optimal control
LA  - eng
PY  - 2014
SN  - 2196-2723
SP  - 18-
TI  - Technology lock-in with horizontal and vertical innovations through limited R&D spending
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29154976
Y2  - 2024-11-22T03:47:14
ER  -