Knowledge spillovers and inequality

Jan Eeckhout, Boyan Jovanovic

    Research output: Contribution to journalArticle

    Abstract

    We develop a dynamic model with knowledge spillovers in production. The model contains two opposing forces. Imitation of other firms helps followers catch up with leaders, but the prospect of doing so makes followers want to free ride. The second force dominates and creates permanent inequality. We show that the greater are the average spillovers and the easier they are to obtain, the greater is the free-riding and inequality. More directed copying raises inequality by raising the free-riding advantages of hanging back. Using Compustat and patent-citation data we find that copying is highly undirected.

    Original languageEnglish (US)
    Pages (from-to)1290-1307
    Number of pages18
    JournalAmerican Economic Review
    Volume92
    Issue number5
    DOIs
    StatePublished - Dec 2002

    Fingerprint

    Knowledge spillovers
    Copying
    Free-riding
    Follower
    Patent citations
    Spillover
    Imitation
    Catch-up

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Knowledge spillovers and inequality. / Eeckhout, Jan; Jovanovic, Boyan.

    In: American Economic Review, Vol. 92, No. 5, 12.2002, p. 1290-1307.

    Research output: Contribution to journalArticle

    Eeckhout, J & Jovanovic, B 2002, 'Knowledge spillovers and inequality', American Economic Review, vol. 92, no. 5, pp. 1290-1307. https://doi.org/10.1257/000282802762024511
    Eeckhout, Jan ; Jovanovic, Boyan. / Knowledge spillovers and inequality. In: American Economic Review. 2002 ; Vol. 92, No. 5. pp. 1290-1307.
    @article{4cde07478a014510834e5858d435034a,
    title = "Knowledge spillovers and inequality",
    abstract = "We develop a dynamic model with knowledge spillovers in production. The model contains two opposing forces. Imitation of other firms helps followers catch up with leaders, but the prospect of doing so makes followers want to free ride. The second force dominates and creates permanent inequality. We show that the greater are the average spillovers and the easier they are to obtain, the greater is the free-riding and inequality. More directed copying raises inequality by raising the free-riding advantages of hanging back. Using Compustat and patent-citation data we find that copying is highly undirected.",
    author = "Jan Eeckhout and Boyan Jovanovic",
    year = "2002",
    month = "12",
    doi = "10.1257/000282802762024511",
    language = "English (US)",
    volume = "92",
    pages = "1290--1307",
    journal = "American Economic Review",
    issn = "0002-8282",
    publisher = "American Economic Association",
    number = "5",

    }

    TY - JOUR

    T1 - Knowledge spillovers and inequality

    AU - Eeckhout, Jan

    AU - Jovanovic, Boyan

    PY - 2002/12

    Y1 - 2002/12

    N2 - We develop a dynamic model with knowledge spillovers in production. The model contains two opposing forces. Imitation of other firms helps followers catch up with leaders, but the prospect of doing so makes followers want to free ride. The second force dominates and creates permanent inequality. We show that the greater are the average spillovers and the easier they are to obtain, the greater is the free-riding and inequality. More directed copying raises inequality by raising the free-riding advantages of hanging back. Using Compustat and patent-citation data we find that copying is highly undirected.

    AB - We develop a dynamic model with knowledge spillovers in production. The model contains two opposing forces. Imitation of other firms helps followers catch up with leaders, but the prospect of doing so makes followers want to free ride. The second force dominates and creates permanent inequality. We show that the greater are the average spillovers and the easier they are to obtain, the greater is the free-riding and inequality. More directed copying raises inequality by raising the free-riding advantages of hanging back. Using Compustat and patent-citation data we find that copying is highly undirected.

    UR - http://www.scopus.com/inward/record.url?scp=0040675472&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=0040675472&partnerID=8YFLogxK

    U2 - 10.1257/000282802762024511

    DO - 10.1257/000282802762024511

    M3 - Article

    AN - SCOPUS:0040675472

    VL - 92

    SP - 1290

    EP - 1307

    JO - American Economic Review

    JF - American Economic Review

    SN - 0002-8282

    IS - 5

    ER -