Substitution and Complementarity in Endogenous Innovation /
Young, Alwyn.
Substitution and Complementarity in Endogenous Innovation / Alwyn Young. - Cambridge, Mass. National Bureau of Economic Research 1993. - 1 online resource: illustrations (black and white); - NBER working paper series no. w4256 . - Working Paper Series (National Bureau of Economic Research) no. w4256. .
January 1993.
The influence of Schumpeter's notion of "creative destruction" may have led to an overemphasis on substitution between technologies in recent models of endogenous innovation. Historical examples of technological change suggest that new technologies may just as frequently complement older technologies, creating, rather than destroying, rents. Acknowledgement of the potential for both substitution and complementarity amongst inventions allows for a much richer characterization of the growth process, creating the possibility of threshold effects and multiple equilibria, and bringing to the forefront the important role played by the expectations of inventive entrepreneurs.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Substitution and Complementarity in Endogenous Innovation / Alwyn Young. - Cambridge, Mass. National Bureau of Economic Research 1993. - 1 online resource: illustrations (black and white); - NBER working paper series no. w4256 . - Working Paper Series (National Bureau of Economic Research) no. w4256. .
January 1993.
The influence of Schumpeter's notion of "creative destruction" may have led to an overemphasis on substitution between technologies in recent models of endogenous innovation. Historical examples of technological change suggest that new technologies may just as frequently complement older technologies, creating, rather than destroying, rents. Acknowledgement of the potential for both substitution and complementarity amongst inventions allows for a much richer characterization of the growth process, creating the possibility of threshold effects and multiple equilibria, and bringing to the forefront the important role played by the expectations of inventive entrepreneurs.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.