On the Direction of Innovation
Bibliographic Data
| ID | 10179026 |
|---|---|
| Authors | Hugo A Hopenhayn (University of California, Los Angeles), Hugo Hopenhayn, Francesco Squintani (0000-0001-5632-5267, University of Warwick) |
| Year | 2021 |
| Volume | 129 |
| Issue | 7 |
| Pages | 1991-2022 |
| Publication date | 2021-02-24 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/714093 |
| OpenAlex | W3130661344 |
| Language | EN |
| Citations received | 3 |
| References cited | 39 |
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. \n \n
Competitive equilibrium · Distribution (mathematics · Economics · Externality · Microeconomics · Perfect competition · Statistics · Value (mathematics · Economic Growth and Productivity · Firm Innovation and Growth · Innovation Policy and RD · Mathematics
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Quality Ladders in the Theory of Growth
Free Entry and Social Inefficiency
A Model of Growth Through Creative Destruction
The economics of pricing parking
Patents as Information Transfer Mechanisms
Rewarding Sequential Innovators
Innovating Firms and Aggregate Innovation
Growth through Heterogeneous Innovations
Monopolistic Competition and Optimum Product Diversity under Firm Heterogeneity
The Simple Economics of Basic Scientific Research
Competitive Search Equilibrium
The Simple Economics of Research Portfolios
Standing on the Shoulders of Giants
| Unique citing works | 3 |
|---|---|
| Citations per year | 1,5 |
| Citation span | 2024 - 2026 (3) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 3 |