Can Social Norms Affect the International Allocation of Innovation?
Series
Working Papers
Type
working paper
Date Issued
2008
Author(s)
Abstract
If economic agents coordinate on social norms more oriented towards the protection of national industries, an asymmetric international specialization in the research and development (R&D) arises even in a tari¤free world with no a priori di¤erences across countries in endowments, demography or technology. This paper exploits the indi¤erence in the composition of R&D expenditure across sectors of the typical multi-sector Schumpeterian framework (forward-looking decisions, CRS R&D technology and free entry) to construct a theory of the international allocation of innovation and education based on sunspot equilibrium. A role for industrial policies as mere coordination devices emerges in an international Schumpeterian framework. The implications for the relationships between inequality and growth are examined.
Language
English
Keywords
Schumpeterian Growth Theory
Inequality
International Trade
Social Norms
Indeterminacy
Sunspots.
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Economic Policy
Refereed
No
Publisher
Business School - Economics, University of Glasgow.
Number
2008_02
Subject(s)
Eprints ID
222158
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media_61073_en.pdf
Size
266.88 KB
Format
Adobe PDF
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