Some researchers have argued that leaders may become ‘locked-in’ to old-fashioned
14
technologies. Redding (1996b) develops a model of competition, where there are both
primary and secondary innovations, in the spirit of Aghion and Howitt (1992). This model can be applied to international competition. Primary innovations can be adopted by any country and represent new best-practise technologies, while secondary innovations are country-specific (they may, for example, by related to physical investment). When a new primary innovation arises, its relative profitability at first will depend on how much secondary innovation has occurred in the previous best-practise technology in each country. The lead nation may have done so much secondary innovation that it is not profitable to adopt the new primary innovation immediately, whereas a nation without a presence in the industry may find it profitable to adopt and so reap rapid ‘learning-by-doing’ economies and overtake the leader. This argument can also be applied to a variety of two-sector models, whether the sectors are food and manufactures (as in Brezis et al., 1993) or labour-intensive and capital-intensive techniques (as in Broadberry, 1994).
Some researchers have argued that leaders may become 'locked-in' to old-fashioned14technologies. Redding (1996b) develops a model of competition, where there are bothprimary and secondary innovations, in the spirit of Aghion and Howitt (1992). This model can be applied to international competition. Primary innovations can be adopted by any country and represent new best-practise technologies, while secondary innovations are country-specific (they may, for example, by related to physical investment). When a new primary innovation arises, its relative profitability at first will depend on how much secondary innovation has occurred in the previous best-practise technology in each country. The lead nation may have done so much secondary innovation that it is not profitable to adopt the new primary innovation immediately, whereas a nation without a presence in the industry may find it profitable to adopt and so reap rapid 'learning-by-doing' economies and overtake the leader. This argument can also be applied to a variety of two-sector models, whether the sectors are food and manufactures (as in Brezis et al., 1993) or labour-intensive and capital-intensive techniques (as in Broadberry, 1994).
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Some researchers argued that leaders May Have Become 'Locked-in' to Old-fashioned
14
Technologies. Redding (1996b) develops a Model of Competition, Where there are Both
Primary and Secondary Innovations, in The Spirit of Aghion and Howitt (one thousand nine hundred ninety-two). This model can be applied to international competition. Primary innovations can be adopted by any country and represent new best-practise technologies, while secondary innovations are country-specific (they may, for example, by related to physical investment). When a new primary innovation arises, its relative profitability at first will depend on how much secondary innovation has occurred in the previous best-practise technology in each country. The lead nation may have done so much secondary innovation that it is not profitable to adopt the new primary innovation immediately, whereas a nation without a presence in the industry may find it profitable to adopt and so reap rapid 'learning-by-doing' economies. and overtake the leader. This argument can also be applied to a variety of two-sector models, whether the sectors are food and manufactures (as in Brezis et al., 1993) or labour-intensive and capital-intensive techniques (as in Broadberry, 1994).
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Some researchers have argued that leaders may become 'Locked-In' to old-fashioned
technologies 14. Redding (1996b develops.) A model of competition where there, are both
primary and secondary innovations in the, spirit of Aghion and Howitt (1992).? This model can be applied to international competition.Primary innovations can be adopted by any country and represent new, best-practise technologies while secondary innovations. Are country-specific (they may for, related, example by to physical investment). When a new primary, innovation arises its. Relative profitability at first will depend on how much secondary innovation has occurred in the previous best-practise. Technology in each country.The lead nation may have done so much secondary innovation that it is not profitable to adopt the new primary innovation. Immediately whereas a, nation without a presence in the industry may find it profitable to adopt and so reap rapid 'learning-by-doing.' Economies and overtake the leader. This argument can also be applied to a variety of, two-sector modelsWhether the sectors are food and manufactures (as in Brezis et al, 1993) or labour-intensive and capital-intensive techniques. (as, in Broadberry 1994).
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