14th journées Louis-André Gérard-Varet

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Inter-sectorial knowledge diffusion in Schumpeterian growth models: Scale effects property revisited

Last modified: 2015-03-15


Knowledge diffusion, both within and across sectors, shapes the pools of knowledge used by R&D activities. Exploiting the formalization of Salop (1979), we propose a Schumpeterian growth model explicitly considering that each innovation influences a more or less significant range of sectors. Besides encompassing most models of the related literature, this framework enables us to reassess the issue of scale effects, showing that most frameworks developed to remove scale effects amount to assuming no inter-sectorial diffusion of knowledge, and that it is possible to eliminate scale effects while maintaining the effects of public policies, but without suppressing knowledge diffusion.


Economic Growth; Schumpeter; Scale Effects; Knowledge Accumulation; Inter-sectorial Knowledge Diffusion; R&D; Knowledge Spillovers; Non Rivalry