TY - BOOK ID - 133691132 TI - Innovate to Lead or Innovate to Prevail: When do Monopolistic Rents Induce Growth? AU - Piazza, Roberto. AU - Zheng, Yu. PY - 2019 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Labor KW - Macroeconomics KW - Demand and Supply of Labor: General KW - Professional Labor Markets KW - Occupational Licensing KW - Labor Economics: General KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Innovation KW - Research and Development KW - Technological Change KW - Intellectual Property Rights: General KW - Wages, Compensation, and Labor Costs: General KW - Labour KW - income economics KW - Technology KW - general issues KW - Labor supply KW - Skilled labor KW - Consumption KW - National accounts KW - Wages KW - Labor market KW - Labor economics KW - Economics KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:133691132 AB - This paper extends the Schumpeterian model of creative destruction by allowing followers’ cost of innovation to increase in their technological distance from the leader. This assumption is motivated by the observation the more technologically ad- vanced the leader is, the harder it is for a follower to leapfrog without incurring extra cost for using leader’s patented knowledge. Under this R&D cost structure, leaders innovate to increase their technological advantage so that followers will eventually stop innovating, allowing leadership to prevail. A new steady state then emerges featuring both leaders and followers innovating in few industries with low aggregate growth. ER -