Paper presented at the Conference on Competition and Industrial Dynamics, Danish Research Unit for Industrial Dynamics, Skagen, 2-3 June 1997

Esben Sloth Andersen
Dept. of Business Studies, Aalborg University, esa@business.auc.dk

Abstract

The paper discusses the Schumpeterian trade-off between static efficiency and dynamic improvements in relation to a model of evolutionary growth and development of an economy that produces a varying number of consumer's goods. The economy shows an increasing standard of living in terms of advances in the consumer's hierarchy of goods. The growth rate is basically determined by the research of firms - both directly and because research creates productivity differentials that leads to exchange and to a restructuring of research strategies of firms. Thus the paper explores knowledge-related problems of an economy in which competition is a matter of overlap between firms' competencies in a multidimensional process of growth and development.

Keywords: Schumpeterian growth and development, Schumpeterian competition, specialisation of R&D, evolutionary economic modelling

JEL classification: L1, O3, O4