Technology adoption, innovation policy and catching-up

Juan R. Perilla Jiménez and Thomas Ziesemer ()

No 2022-024, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: A model is proposed where economic growth is driven by innovation along the diffusion and adoption of technology from the frontier. Business innovation investments are related to households savings, which generates equilibria with low levels of, and equilibria with high levels of, innovation. Low-level equilibria are unstable. Starting from a position with low levels of investment and innovation, increasing investments are associated with high but decreasing dependence on international technology diffusion. A major objective of policy-making is to increase investment sufficiently in the lower end to reach the high level steady state. An economic rationale is provided for the existence of productivity improving equilibria, where distance to frontier countries is reduced owing to a tax and subsidy mechanism designed to boost innovation.

JEL-codes: C62 O33 O38 O40 (search for similar items in EconPapers)
Date: 2022-07-21
New Economics Papers: this item is included in nep-cse, nep-ino and nep-tid
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cris.maastrichtuniversity.nl/ws/files/106568914/wp2022_024.pdf (application/pdf)

Related works:
Journal Article: Technology adoption, innovation policy and catching-up (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2022024

Access Statistics for this paper

More papers in MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) Contact information at EDIRC.
Bibliographic data for series maintained by Ad Notten ( this e-mail address is bad, please contact ).