Perfectly competitive innovation

Michele Boldrin and David Levine

No 303, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: We construct a competitive model of innovation and growth under constant returns to scale. Previous models of growth under constant returns cannot model technological innovation. Current models of endogenous innovation rely on the interplay between increasing returns and monopolistic markets. In fact, established wisdom claims monopoly power to be instrumental for innovation and sees the nonrivalrous nature of ideas as a natural conduit to increasing returns. The results here challenge the positive description of previous models and the normative conclusion that monopoly through copyright and patent is socially beneficial.

Keywords: Competition; technological innovations (search for similar items in EconPapers)
Date: 2002
New Economics Papers: this item is included in nep-dge and nep-ino
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Citations: View citations in EconPapers (10)

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Related works:
Journal Article: Perfectly competitive innovation (2008)
Working Paper: Perfectly Competitive Innovation (2006)
Working Paper: Perfectly Competitive Innovation (2002)
Working Paper: Perfectly Competitive Innovation (2002)
Working Paper: Perfectly Competitive Innovation (2000)
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