R&D, Competition and Growth with Human Capital Accumulation : A Comment

Bianco, Dominique (2007): R&D, Competition and Growth with Human Capital Accumulation : A Comment.

Abstract

This paper shows that the results of Bucci (2003) depend criti- cally on the assumption that there are no difference between the intermediate goods share in final output, the returns of specialization and the degree of market power of monopolistic competitors. In this paper, we disentangle the market power parameter from the intermediate goods share in final output and the returns to specialization. The main result of this paper is that the competition has no effect on growth contrary to Bucci (2003). This result is explained by the fact that economic growth rate depends on the parameters describing preference and the human capital accumulation technology but is completely independent of competition and R&D activity.

• Item Type: MPRA Paper
• Institution: CRP Henri Tudor, University of Nice-Sophia-Antipolis, GREDEG (CNRS)
• Language: English
• Keywords: Endogenous growth; Horizontal di®erentiation; Technologi- cal change; Imperfect competition
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J26 - Retirement ; Retirement Policies; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change ; Industrial Price Indices

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