Using a balanced growth model with human capital accumulation and R&D activity, this paper examines how imperfect competition in the product market affects economic growth and the sectoral distribution of skills in the long-run. We find that steady-state growth is driven only by incentives to acquire human capital and is independent of scale effects. In the model imperfect competition in the product market has a positive growth effect, while influencing the allocation of skills to different economic activities. High R&D investment is not necessarily associated with high output growth.
Keely, L. C., Quah, D. (1998): Technology in Growth. Centre for Economic Performance, Discussion Paper No. 391.
Keely, L. C. (2001): Using Patents in Growth Models. Economics of Innovation and New Technology, 10(6): 449-492.
'Using Patents in Growth Models' () 10Economics of Innovation and New Technology: 449-492.
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Aghion, P., Howitt, P. (1997): A Schumpeterian Perspective on Growth and Competition. In: D. M. Kreps - K. F. Wallis (eds): Advances in Economics and Econometrics: Theory and Applications. Vol. 2. Cambridge: Cambridge University Press, 279-317.
A Schumpeterian Perspective on Growth and Competition, () 279-317.
A Schumpeterian Perspective on Growth and Competition2279317)| false