Technology Adoption and Trade Policies
نویسندگان
چکیده
We examine in a dyanmic model how a firm determines the optimal level of innovation, and how a firm chooses between innovation and imitation. This paper considers a local firm, which is competing with a foreign, more productive, firm in terms of quantity, and at the same time, the local firm is able to spend the optimal amount of resources on innovation, with the purpose of closing the technology gap with the foreign firm. At the time of innovation, the firm has the option of spending less (or no) resources on innovation, if it decides to simply learn from (imitate) the foreign firm. Whether a firm chooses to imitate or to innovate depends on, among other things, how fast and how much it can imitate and also the cost of innovation. A full consideration of the decision of the local firm is allowed, as how a change in technology may affect the outputs of the firms, the market demand, and its profit will be analyzed carefully. c ° Koji Shimomura and Kar-yiu Wong
منابع مشابه
Foreign Investment as Main Factor for Successful Funds and Its Effect on Trade Balance Strategic Technology Adoption under Technological Uncertainty
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