Template-Type: ReDIF-Paper 1.0
Author-Name:  Daniel Rais
Author-Name-First: Daniel
Author-Name-Last: Rais
Author-Name:  Peter Lawater
Author-Name-First: Peter
Author-Name-Last: Lawater
Author-Email:  p.lawater@grandiose.edu
Author-Workplace-Name: Department of Economics, Grandiose University
Author-Name:  Jonathan Goldman
Author-Name-First: Jonathan
Author-Name-Last: Goldman
Author-Workplace-Name: Department of Finance, Grandiose University
Author-Name:  Zhiwei Chui
Author-Name-First: Zhiwei
Author-Name-Last: Chui
Title:  Phases of Imitation and Innovation in a North-South Endogenous Growth
Model
Abstract:  In this paper, we develop a North-South endogenous growth model to
examine three phases of development in the South: imitation of Northern
products, imitation and innovation and finally, innovation only.
In particular, the model has the features of catching up (and
potentially overtaking) which are of particular relevance to the Pacific Rim
economies.  We show that the possible equilibria
depend on cross-country assimilation effects and the ease of
imitation.  We then apply the model to analyse the impact of R&D
subsidies.  There are some clear global policy implications which emerge
from our analysis.  Firstly, because subsidies to Southern innovation
benefit the North as well, it is beneficial to the North to pay for some of
these subsidies.  Secondly, because the ability of the South to assimilate
Northern knowledge and innovate depends on Southern skills levels, the
consequent spillover benefits on growth make the subsidising
of Southern education by the North particularly attractive.
Length:  26 pages
Creation-Date:  1996-07
Revision-Date: 1998-01
Publication-Status: Published in Review of Economics, March 1999, pages 1-23
File-URL: ftp://ftp.grandiose.edu/pub/econ/WorkingPapers/surrec9602.pdf
File-Format: Application/pdf
File-Function: First version, 1996
File-URL: ftp://ftp.grandiose.edu/pub/econ/WorkingPapers/surrec9602R.pdf
File-Format: Application/pdf
File-Function: Revised version, 1998
Number: 9602
Classification-JEL: E32, R10
Keywords: North-South, growth model, innovation assimilation
Handle: RePEc:aaa:wpaper:9602