TY - JOUR AU - Brezis,Elise AU - Krugman,Paul AU - Tsiddon,Daniel TI - Leapfrogging: A Theory of Cycles in National Technological Leadership JF - National Bureau of Economic Research Working Paper Series VL - No. 3886 PY - 1991 Y2 - October 1991 UR - http://www.nber.org/papers/w3886 L1 - http://www.nber.org/papers/w3886.pdf N1 - Author contact info: Elise Brezis Dept. of Economics Bar-Ilan University Ramat Gan ISRAEL E-Mail: brezie@mail.biu.ac.il Paul R. Krugman Department of Economics Princeton University Woodrow Wilson School Princeton, NJ 08544 Tel: 609/258-4570 Fax: 609/258-2809 E-Mail: pkrugman@princeton.edu Daniel Tsiddon Department of Economics Tel-Aviv University Ramat-Aviv Tel-Aviv 69978 ISRAEL Tel: NA E-Mail: tsiddon@post.tau.ac.il AB - Much recent work has suggested that endogenous technological change tends to reinforce the position of the leading nations. Yet from time to time this leadership role shifts. We suggest a mechanism that explains this pattern of -leapfrogging- as a response to occasional major changes in technology. When such a change occurs, leading nations may have no incentive to adopt the new ideas; given their extensive experience with older technologies, the new ideas do not initially seem to be an improvement. Lagging nations, however, have less experience; the new techniques offer them an opportunity to use their lower wages, to break into the market. If the new techniques eventually prove to be more productive than the old, there is a reversal of leadership. ER -