Competition, Imitation and Growth with Step-by-Step Innovation

Aghion, Philippe; Harris, Christopher; Howitt, Peter; Vickers, John

doi:10.1111/1467-937x.00177

Cited by 867 publications

(704 citation statements)

References 27 publications

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“…To reconcile theory with evidence, we extended our basic Schumpeterian model by allowing for step-by-step innovation in the Schumpeterian growth model (see Aghion et al 1997Aghion et al , 2001). Namely, a firm that is currently behind the technological leader in the same sector or industry must catch up with the leader before becoming a leader itself.…”

Section: Growth Meets Io and Our Dialog With Empiricistsmentioning

confidence: 99%

Entrepreneurship and growth: lessons from an intellectual journey

Aghion

2016

Small Bus Econ

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This lecture is the story of an intellectual journey, that of elaborating a new-Schumpeteriantheory of economic growth. A theory where (i) growth is generated by innovative entrepreneurs; (ii) entrepreneurial investments respond to incentives that are themselves shaped by economic policies and institutions; (iii) new innovations replace old technologies: in other words, growth involves creative destruction and therefore involves a permanent conflict between incumbents and new entrants. First, we motivate and then lay out the Schumpeterian paradigm and point to a set of empirical predictions which distinguish this paradigm from other growth models. Second, we raise four debates on which the Schumpeterian approach sheds new light: the middle income trap, secular stagnation, the recent rise in top income inequality, and firm dynamics. Third and last, we show how the paradigm can be used to think (or rethink) about growth policy design.

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Section: Growth Meets Io and Our Dialog With Empiricistsmentioning

confidence: 99%

Entrepreneurship and growth: lessons from an intellectual journey

Aghion

2016

Small Bus Econ

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“…The experiment introduced competition for both public and private providers, which might have affected quality also of publicly provided rehabilitation (for contributions that point out that more competition may stimulate innovations, see for instance, Aghion et al 2001Aghion et al , 2005. The private providers, however, faced additional competition since they competed for contracts to participate in the experiment and competed for clients through consumer Taken together, the theory about incentives suggests that private providers faced stronger incentives for providing efficient rehabilitation in terms of differences in ownership, the degree of competition, the importance of reputation building and the terms of compensation.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Does privatisation of vocational rehabilitation improve labour market opportunities? Evidence from a field experiment in Sweden

Laun

Thoursie

2014

Journal of Health Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for Labour Market Policy Evaluation (IFAU) is a research institute under the Swedish Ministry of Employment, situated in Uppsala. IFAU's objective is to promote, support and carry out scientific evaluations. The assignment includes: the effects of labour market policies, studies of the functioning of the labour market, the labour market effects of educational policies and the labour market effects of social insurance policies. IFAU shall also disseminate its results so that they become accessible to different interested parties in Sweden and abroad. Terms of use: Documents inIFAU also provides funding for research projects within its areas of interest. The deadline for applications is October 1 each year. Since the researchers at IFAU are mainly economists, researchers from other disciplines are encouraged to apply for funding.IFAU is run by a Director-General. The institute has a scientific council, consisting of a chairman, the Director-General and five other members. Among other things, the scientific council proposes a decision for the allocation of research grants. A reference group including representatives for employer organizations and trade unions, as well as the ministries and authorities concerned is also connected to the institute. Papers published in the Working Paper Series should, according to the IFAU policy, have been discussed at seminars held at IFAU and at least one other academic forum, and have been read by one external and one internal referee. They need not, however, have undergone the standard scrutiny for publication in a scientific journal. The purpose of the Working Paper Series is to provide a factual basis for public policy and the public policy discussion. AbstractThis paper analyses if privatisation of vocational rehabilitation can improve labour market opportunities for individuals on long-term sickness absence. We use a field experiment performed by the Employment Service and the Social Insurance Agency in Sweden during 2008 to 2010, in which over 4,000 participants were randomly offered private and public rehabilitation. We find no differences in employment rates following rehabilitation between individuals who received rehabilitation by private and public providers. Also the average cost of rehabilitation was essentially equal for the two types of providers. This suggests that there are no large efficiency gains from privatising vocational rehabilitation.

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“…Specifically, according to Aghion et al (2005), the relationship is an inverted-U, where competition encourages innovation in firms that operate at similar technological levels and discourages innovation in laggard firms, all caused by the difference between the firm's pre-and post-innovation rents. For further analysis see Hart (1980); Schmidt (1997); Aghion et al (2001); Vives (2008) ;Schmutzler (2009Schmutzler ( , 2013Nickell (1996) ;Blundell, Griffith, and Reenen (1999); Aghion et al (2005); Aghion and Griffith (2006); Aghion et al (2014).…”

Section: A Weak Innovation Climatementioning

confidence: 99%

The New Imperative of Innovation: Policy Perspectives for Latin America and the Caribbean

Navarro¹,

Benavente²,

Crespi³

2016

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The main purpose of this study is to present the conceptual basis that supports science, technology, and innovation (STI) policy in Latin America and the Caribbean (LAC). It starts by clarifying STI relationship, both conceptual and empirical, to economic growth and it explains how market and coordination failures hinder innovation. Then, it discusses a variety of demand-and supply-side policies aimed at addressing these private sector and institutional insufficiencies. In the specific case of LAC, it examines the region's underperformance in innovation relative to both emerging and advanced economies, and analyses the degree to which scientific productivity and knowledge inputs have led to accelerated economic development. Finally, the publication presents five dimensions of success for STI policies based on international best practices that should stimulate innovation and economic growth and guide the IDB's work in STI in the region. Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of the IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.

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Competition, Imitation and Growth with Step-by-Step Innovation

Cited by 867 publications

References 27 publications

Entrepreneurship and growth: lessons from an intellectual journey

Entrepreneurship and growth: lessons from an intellectual journey

Does privatisation of vocational rehabilitation improve labour market opportunities? Evidence from a field experiment in Sweden

The New Imperative of Innovation: Policy Perspectives for Latin America and the Caribbean

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