NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Substitution and Complementarity in Endogenous Innovation

Alwyn Young

NBER Working Paper No. 4256
Issued in January 1993
NBER Program(s):   EFG

The influence of Schumpeter's notion of "creative destruction" may have led to an overemphasis on substitution between technologies in recent models of endogenous innovation. Historical examples of technological change suggest that new technologies may just as frequently complement older technologies, creating, rather than destroying, rents. Acknowledgement of the potential for both substitution and complementarity amongst inventions allows for a much richer characterization of the growth process, creating the possibility of threshold effects and multiple equilibria, and bringing to the forefront the important role played by the expectations of inventive entrepreneurs.

download in pdf format
   (1302 K)

email paper

This paper is available as PDF (1302 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w4256

Published: The Quarterly Journal of Economics, vol. cviii, issue 3, August 1993, (MIT Press, Cambridge),pp. 775-807.

Users who downloaded this paper also downloaded these:
Young w5211 Growth Without Scale Effects
Young w3712 Invention and Bounded Learning by Doing
Young A Tale of Two Cities: Factor Accumulation and Technical Change in Hong Kong and Singapore
Young w4482 Lessons from the East Asian NICs: A Contrarian View
Young w3577 Learning by Doing and the Dynamic Effects of International Trade
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us