The Library
On the direction of innovation
Tools
Hopenhayn, Hugo and Squintani, Francesco (2021) On the direction of innovation. Journal of Political Economy, 129 (7). pp. 1991-2022. doi:10.1086/714093 ISSN 0022-3808.
|
PDF
WRAP-on-the-direction-innovation-Squintani-2021.pdf - Accepted Version - Requires a PDF viewer. Download (568Kb) | Preview |
Official URL: https://doi.org/10.1086/714093
Abstract
How are resources allocated across different R&D areas (i.e., problems to be solved)? As a result of dynamic congestion externalities, the competitive market allocates excessive resources into those of high return, being those with higher private (and social) payoffs. Good problems are tackled too soon, and as a result the distribution of open research problems in the socially optimal solution stochastically dominates that of the competitive equilibrium. A severe form of rent dissipation occurs in the latter, where the total value of R&D activity equals the value of allocating all resources to the least valuable problem solved. Resulting losses can be substantial.
Item Type: | Journal Article | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Subjects: | T Technology > T Technology (General) | ||||||||||||
Divisions: | Faculty of Social Sciences > Economics | ||||||||||||
Library of Congress Subject Headings (LCSH): | Technological innovations, Technology -- Research | ||||||||||||
Journal or Publication Title: | Journal of Political Economy | ||||||||||||
Publisher: | University of Chicago Press | ||||||||||||
ISSN: | 0022-3808 | ||||||||||||
Official Date: | July 2021 | ||||||||||||
Dates: |
|
||||||||||||
Volume: | 129 | ||||||||||||
Number: | 7 | ||||||||||||
Page Range: | pp. 1991-2022 | ||||||||||||
DOI: | 10.1086/714093 | ||||||||||||
Status: | Peer Reviewed | ||||||||||||
Publication Status: | Published | ||||||||||||
Reuse Statement (publisher, data, author rights): | © 2021 by © 2021 by The University of Chicago. All rights reserved. | ||||||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||||||
Copyright Holders: | © 2021 by The University of Chicago. All rights reserved. | ||||||||||||
Date of first compliant deposit: | 13 January 2021 | ||||||||||||
Date of first compliant Open Access: | 21 May 2022 | ||||||||||||
RIOXX Funder/Project Grant: |
|
||||||||||||
Related URLs: |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |
Downloads
Downloads per month over past year