The Relationship Between Profitability, Innovation and Technology Gap: A Basic Model
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F14%3A00076912" target="_blank" >RIV/00216224:14560/14:00076912 - isvavai.cz</a>
Result on the web
<a href="http://nho.econ.muni.cz/14-2014/3-2014/relationship-between-profitability-innovation-and-technology-gap-basic-model" target="_blank" >http://nho.econ.muni.cz/14-2014/3-2014/relationship-between-profitability-innovation-and-technology-gap-basic-model</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.2478/revecp-2014-0011" target="_blank" >10.2478/revecp-2014-0011</a>
Alternative languages
Result language
angličtina
Original language name
The Relationship Between Profitability, Innovation and Technology Gap: A Basic Model
Original language description
This paper introduces a model of innovation that explains some of the stylized facts presented in recent empirical literature. In the model, firms choose R and D expenditures that maximize their expected profits under the assumption that R and D expenditures of firms might be constrained by the size of their profits. Optimal decisions of firms generate relationships between profitability and innovation of individual firms that may create the observed patterns at the industry level. In particular, the model is able to explain an inverted-U relationship between profitability and innovation in the industry together with decreasing or flat and concave relationships between profitability and the dispersion of productivity in the industry. Additionally, thepaper investigates the parameter space for which the model generates the observed relationships.
Czech name
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Czech description
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Classification
Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Národohospodářský obzor ? Review of Economic Perspectives
ISSN
1213-2446
e-ISSN
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Volume of the periodical
14
Issue of the periodical within the volume
3
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
17
Pages from-to
215-231
UT code for WoS article
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EID of the result in the Scopus database
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