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- Jena Economic Resea...
- Volume 1
- Exploration and Exp...
Exploration and Exploitation – The Role of Entrepreneurship and R&D in the Process of Innovation
- Autor(in)
- Erschienen
- 20. Dezember 2007
- Nummer des Discussion-Papers
-
2007-108
- Schlagwort(e)
-
Entrepreneurship
Innovation
Quality Ladders
R&D Sector
Variety Expansion
- Zusammenfsg.
-
We formulate a model that explicitly separates two functions in the innovation process: The introduction of new goods and the quality improvement of existing goods. While the latter is performed by the corporate R&D sector, the first is performed by entrepreneurs. We show that in a three sector economy, which also includes a producing sector, there exists a stable non trivial allocation of labor to production, innovation and entrepreneurship. We compute the steady state allocation of labor to production, R&D and Entrepreneurship. We show that the innovation rate decreases if one of the innovative sectors does not exist.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- entrepreneurship
- JEL-Classification for JER
- O31 - Innovation and Invention: Processes and Incentives ; O41 - One, Two, and Multisector Growth Models