Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Macroeconomics

Editor-in-Chief: Cavalcanti, Tiago / Kambourov, Gueorgui

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Lambertini, Luisa / Nimark, Kristoffer / Wang, Pengfei

2 Issues per year


IMPACT FACTOR 2017: 0.378
5-year IMPACT FACTOR: 0.462

CiteScore 2017: 0.62

SCImago Journal Rank (SJR) 2017: 0.553
Source Normalized Impact per Paper (SNIP) 2017: 0.605

Online
ISSN
1935-1690
See all formats and pricing
More options …

The Arrow Effect under Competitive R&D

Guido Cozzi
Published Online: 2007-01-16 | DOI: https://doi.org/10.2202/1935-1690.1215

This paper shows that standard Schumpeterian theory does not imply that the incumbent monopolist has too little incentive to carry out R&D aimed at displacing its own product. If the patent holder is rational as is any other R&D investor, she will know that in equilibrium her patent’s obsolescence shall not be affected by her own R&D investment, because all the R&D firms operate under perfect competition and constant returns to scale at the private level. This reconciles Schumpeterian theory with the empirical evidence on innovation by incumbents. It is proved that the usual macroeconomic implications maintain their validity.

Keywords: Arrow effect; basic Schumpeterian model; R&D and growth; innovation by incumbents

About the article

Published Online: 2007-01-16


Citation Information: The B.E. Journal of Macroeconomics, Volume 7, Issue 1, ISSN (Online) 1935-1690, DOI: https://doi.org/10.2202/1935-1690.1215.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
ANGUS C. CHU, GUIDO COZZI, YUICHI FURUKAWA, and CHIH-HSING LIAO
Journal of Money, Credit and Banking, 2018
[2]
Angus C. Chu and Guido Cozzi
Review of Economic Dynamics, 2018, Volume 29, Page 68
[3]
Giammario Impullitti
Review of International Economics, 2016, Volume 24, Number 1, Page 171
[4]
Angus C. Chu and Shiyuan Pan
Macroeconomic Dynamics, 2013, Volume 17, Number 04, Page 955
[5]
Guido Cozzi and Silvia Galli
Journal of Economic Growth, 2014, Volume 19, Number 2, Page 183
[6]
Ivan Ledezma
Journal of Economic Dynamics and Control, 2013, Volume 37, Number 1, Page 176
[7]
Vincenzo Denicolò and Piercarlo Zanchettin
The Economic Journal, 2012, Volume 122, Number 561, Page 618
[8]
LUCA SPINESI
Journal of Public Economic Theory, 2012, Volume 14, Number 1, Page 67

Comments (0)

Please log in or register to comment.
Log in