Publication details for Prof Guido Cozzi

Cozzi, G. & Tarola, O. (2006). R&D cooperation, innovation, and growth. Journal of Institutional and Theoretical Economics 162(4): 683-701.

• Publication type: Journal papers: academic
• ISSN/ISBN: 0932-4569
• DOI: 10.1628/093245606779252670
• View online: Online version
• Durham research online: DRO record

Author(s) from Durham

• Prof Guido Cozzi

Abstract

This paper presents a standard endogenous growth framework in which the source of growth is represented by vertical innovations. The crucial assumption we introduce is that there is a positive information gap concerning the discovery of innovation. The aim of reducing the information-dissemination lag provides incentives for firms to decide to merge their research efforts. Also, we find that the skilled - unskilled wage gap is strongly related to this phenomenon. We prove that changing antitrust attitudes toward efficiency-motivated mergers in contestable industries may simultaneously explain observed changes in the industry structure, qualitative innovation, wage inequality, and labor-supply composition.