Innovation Diffusion, Technological Convergence and Economic Growth

Quaderni - Working Paper DSE N° 912

22 Pages Posted: 23 Nov 2013

See all articles by Rainer Andergassen

Rainer Andergassen

University of Bologna - Department of Economics

Franco Nardini

University of Bologna - Department of Mathematics

Massimo Ricottilli

University of Bologna

Date Written: November 21, 2013

Abstract

The paper investigates the mechanics through which novel technological principles are developed and diffused throughout an economy consisting of a technologically heterogeneous ensemble of firms. In the model entrepreneurs invest in the discovery and in the diffusion of a technological principle and their profit flow depends on how many firms adopt the innovation and on how long it takes other entrepreneurs to improve it. We show that technological convergence emerges from the competition among entrepreneurs for the profit flow and characterize the economy's growth rate.

Keywords: innovation, innovation diffusion, technological convergence, general purpose technologies, economic growth

JEL Classification: O31, O33, O410, E190

Suggested Citation

Andergassen, Rainer and Nardini, Franco and Ricottilli, Massimo, Innovation Diffusion, Technological Convergence and Economic Growth (November 21, 2013). Quaderni - Working Paper DSE N° 912. Available at SSRN: https://ssrn.com/abstract=2357938 or http://dx.doi.org/10.2139/ssrn.2357938

Rainer Andergassen (Contact Author)

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

Franco Nardini

University of Bologna - Department of Mathematics ( email )

Piazzadi Porta San Donato, 5
Bologna, 40126
Italy

Massimo Ricottilli

University of Bologna ( email )

Piazza Scaravilli 2
Bologna, 40100
Italy

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