Leadership Cycles
| dc.creator | Denicolo, Vincenzo | |
| dc.creator | Zanchettin, Piercarlo | |
| dc.date | 2017-04-01T20:06:56Z | |
| dc.date.accessioned | 2026-07-09T05:09:10Z | |
| dc.description | We study a quality-ladder model of endogenous growth that produces stochastic leadership cycles. Over a cycle, industry leaders can innovate several successive times in the same industry, gradually increasing the magnitude of their technological lead before being replaced by a new entrant. Initially, new leaders are eager to enlarge their lead and do much of the research, but if they innovate repeatedly, their propensity to invest in R&D decreases. Eventually they stop doing research altogether, and as they are overtaken a new cycle starts. The model generates a skewed firm size distribution and a deviation from Gibrat’s law that accord with the empirical evidence. We also consider various policy measures, showing that in some cases policy should favour R&D by incumbents, not outsiders, and that stronger patent protection may reduce innovation and growth. | |
| dc.identifier | doi:10.22004/ag.econ.60683 | |
| dc.identifier | https://ageconsearch.umn.edu/record/60683/files/NDL2010-035.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/60683 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/559705 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/60683 | |
| dc.title | Leadership Cycles | |
| dc.type | Text |