Innovations, production complexity and the optimality of R&D

Patrick Waelbroeck

doi:10.1016/S0165-1765(02)00320-8

Innovations, production complexity and the optimality of R&D

Patrick Waelbroeck

Université Libre de Bruxelles

Research output: Contribution to journal › Article › peer-review

Abstract

Using a simple framework in which production involves several inputs that can be defective, we show that when innovations are used as factor of production, entrepreneurs do not take into account the fact that their innovations increase the complexity of the production process. This leads to a negative complexity externality.

Original language	English
Pages (from-to)	277-282
Number of pages	6
Journal	Economics Letters
Volume	79
Issue number	2
DOIs	https://doi.org/10.1016/S0165-1765(02)00320-8
Publication status	Published - 1 May 2003
Externally published	Yes

Keywords

Complexity
Endogenous growth
Innovations
Social welfare

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10.1016/S0165-1765(02)00320-8

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KW - Endogenous growth

KW - Innovations

KW - Social welfare

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Innovations, production complexity and the optimality of R&D

Abstract

Keywords

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