Global Innovation Contests
The primary objective of this paper is to develop a two-country, dynamic, general equilibrium model with innovation contests to formally analyze the impact of globalization on the skill premium and fully-endogenous growth. Higher quality products are endogenously discovered through stochastic and se...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-02-01
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| Series: | Games |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2073-4336/14/1/18 |
| _version_ | 1797620902591987712 |
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| author | Elias Dinopoulos Constantinos Syropoulos Theofanis Tsoulouhas |
| author_facet | Elias Dinopoulos Constantinos Syropoulos Theofanis Tsoulouhas |
| author_sort | Elias Dinopoulos |
| collection | DOAJ |
| description | The primary objective of this paper is to develop a two-country, dynamic, general equilibrium model with innovation contests to formally analyze the impact of globalization on the skill premium and fully-endogenous growth. Higher quality products are endogenously discovered through stochastic and sequential global innovation contests in which challengers devote resources to R&D, while technology leaders undertake rent-protection activities (RPAs) to prolong the expected duration of their temporary monopoly power by hindering the R&D effort of challengers. The model generates intra-sectoral trade, multinationals, and international outsourcing of investment services. Globalization, captured by a move from autarky to the integrated-world equilibrium, leads to convergence of wages and growth rates. Globalization and long-run growth are either substitutes or complements depending on a country’s relative skill abundance and the ranking of skill intensities between RPAs and R&D services. Trade openness between two countries that possess identical relative skill endowments but differ in size does not affect either country’s long-run growth. |
| first_indexed | 2024-03-11T08:48:10Z |
| format | Article |
| id | doaj.art-b06d0287c8b64bdfa09f94dc691b7d3c |
| institution | Directory Open Access Journal |
| issn | 2073-4336 |
| language | English |
| last_indexed | 2024-03-11T08:48:10Z |
| publishDate | 2023-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Games |
| spelling | doaj.art-b06d0287c8b64bdfa09f94dc691b7d3c2023-11-16T20:38:48ZengMDPI AGGames2073-43362023-02-011411810.3390/g14010018Global Innovation ContestsElias Dinopoulos0Constantinos Syropoulos1Theofanis Tsoulouhas2Department of Economics, University of Florida, Gainesville, FL 32611, USASchool of Economics, LeBow College of Business, Drexel University, Philadelphia, PA 19104, USADepartment of Economics and Business Management, University of California, Merced, CA 95343, USAThe primary objective of this paper is to develop a two-country, dynamic, general equilibrium model with innovation contests to formally analyze the impact of globalization on the skill premium and fully-endogenous growth. Higher quality products are endogenously discovered through stochastic and sequential global innovation contests in which challengers devote resources to R&D, while technology leaders undertake rent-protection activities (RPAs) to prolong the expected duration of their temporary monopoly power by hindering the R&D effort of challengers. The model generates intra-sectoral trade, multinationals, and international outsourcing of investment services. Globalization, captured by a move from autarky to the integrated-world equilibrium, leads to convergence of wages and growth rates. Globalization and long-run growth are either substitutes or complements depending on a country’s relative skill abundance and the ranking of skill intensities between RPAs and R&D services. Trade openness between two countries that possess identical relative skill endowments but differ in size does not affect either country’s long-run growth.https://www.mdpi.com/2073-4336/14/1/18innovation contestseconomic growthscale effectsR&Drent-protection activitiesbarriers to innovation |
| spellingShingle | Elias Dinopoulos Constantinos Syropoulos Theofanis Tsoulouhas Global Innovation Contests Games innovation contests economic growth scale effects R&D rent-protection activities barriers to innovation |
| title | Global Innovation Contests |
| title_full | Global Innovation Contests |
| title_fullStr | Global Innovation Contests |
| title_full_unstemmed | Global Innovation Contests |
| title_short | Global Innovation Contests |
| title_sort | global innovation contests |
| topic | innovation contests economic growth scale effects R&D rent-protection activities barriers to innovation |
| url | https://www.mdpi.com/2073-4336/14/1/18 |
| work_keys_str_mv | AT eliasdinopoulos globalinnovationcontests AT constantinossyropoulos globalinnovationcontests AT theofanistsoulouhas globalinnovationcontests |