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Research and Productivity

  • Boyan Jovanovic
  • Yaw Nyarko
Conference paper

Abstract

We propose an informational theory of how research raises productivity. We model research as a signal on an unknown parameter of a technology. Such a signal teaches the firm how to operate the technology it uses now, or one that it intends to use in the future. The paper deals with two topics. The first is the construction of the firm’s knowledge stock, and the second is the interpretation of existing estimates of the rate of return to basic and applied research.

Keywords

Productivity Growth Effective Signal Steady State Equilibrium Private Rate Potential Entrant 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 1998

Authors and Affiliations

  • Boyan Jovanovic
    • 1
  • Yaw Nyarko
    • 1
  1. 1.New York UniversityUSA

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