We develop a growth model where even though ideas eventually become harder
to find on any particular product line and long-run economic growth is constant de
spite sustained population growth, long-run innovation and growth are responsive
to changes in market incentives, in particular to changes in market size. In the spirit
of Aghion and Howitt (1996), entrants introduce new technologies through research
and incumbents incrementally improve those technologies through development.
Over time, however, it becomes harder to improve upon an existing technology
such that incumbent firms eventually run out of ideas and exit the market. Their
departure paves the way for new entrants that discover new technologies, thereby
\u201cresetting the innovation clock.\u201d It is this innovation reset process that generates
sustained long-run endogenous economic growth. Analysis of the model reveals
that, in a stationary equilibrium, the rate of economic growth is constant and en
dogenous despite a growing population and declining innovation efficiency at the
firm-level. We present macro- and microlevel evidence that supports the predictions
of our model.<\/p>","protected":false},"excerpt":{"rendered":"
\u00c9valuer le r\u00f4le de la technologie et d'une gouvernance fond\u00e9e sur les donn\u00e9es dans la cr\u00e9ation d'environnements urbains plus agr\u00e9ables \u00e0 vivre et plus durables.<\/p>","protected":false},"template":"","meta":{"_acf_changed":true},"thematique":[47],"type-de-publication":[45],"class_list":["post-177","publication","type-publication","status-publish","hentry","thematique-innovation","type-de-publication-working-paper"],"acf":[],"yoast_head":"\n