Information Technology and the Dynamics of Joint Innovation
Cowan, Robin and Jonard, Nicolas (2004). Information Technology and the Dynamics of Joint Innovation. UNU-MERIT Research Memoranda. UNU-MERIT.
Sub-type Working paper Author Cowan, Robin
Title Information Technology and the Dynamics of Joint Innovation Series Title UNU-MERIT Research Memoranda Volume/Issue No. 14 Publication Date 2004 Publisher UNU-MERIT Language eng Abstract We develop a model of an innovative industry to examine how information technology, by both enhancing matching efficiency and knowledge sharing, can have an ambiguous effect on the total amount of innovation. We consider a population of firms holding different knowledge expertise, and forming partnerships to conduct joint R&D. We assume that bringing together different expertise has positive value for innovating but also that joint innovation implies a partial convergence of the partners' expertise. We study how the distribution of firms changes and thus how the innovative potential of the economy evolves. We show that as heterogeneity is used as an input by the innovative process, the industry must eventually collapse to a unique expertise, but how fast this takes place depends on the quality of IT. As a result of falling dispersion, a tension arises between static and dynamic efficiency. JEL C78
Copyright Year 2004 Copyright type All rights reserved
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