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High-tech and High Capability in a Growth Model

High-tech and High Capability in a Growth Model
High-tech and High Capability in a Growth Model
A growth model is developed to substantiate the conventional wisdom that regards high-tech high-capability firms as an engine of sustained technological progress. High-tech industries are characterized by abounding technological opportunities, which promote endogenous high capability firms due to a competitive escalation mechanism. While high-tech high-capability firms capitalize on and discharge the existing innovation potentials, they also contribute to recharge (due to knowledge spillovers). They are a source of growth and high wage rate. An inquiry into the reasons why the high-tech/high-capability growth mechanism is not widely adoptable across countries points to the role of the underlying corporate governance systems.
0020-6598
215-243
Tong, Jian
8109179b-ff1d-483e-9ee0-bf3f96cda71b
Tong, Jian
8109179b-ff1d-483e-9ee0-bf3f96cda71b

Tong, Jian (2005) High-tech and High Capability in a Growth Model. International Economic Review, 46 (1), 215-243. (doi:10.1111/j.0020-6598.2005.00316.x).

Record type: Article

Abstract

A growth model is developed to substantiate the conventional wisdom that regards high-tech high-capability firms as an engine of sustained technological progress. High-tech industries are characterized by abounding technological opportunities, which promote endogenous high capability firms due to a competitive escalation mechanism. While high-tech high-capability firms capitalize on and discharge the existing innovation potentials, they also contribute to recharge (due to knowledge spillovers). They are a source of growth and high wage rate. An inquiry into the reasons why the high-tech/high-capability growth mechanism is not widely adoptable across countries points to the role of the underlying corporate governance systems.

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Published date: 2005

Identifiers

Local EPrints ID: 33792
URI: http://eprints.soton.ac.uk/id/eprint/33792
ISSN: 0020-6598
PURE UUID: 86fa57c4-1488-464e-99de-90a12531919f
ORCID for Jian Tong: ORCID iD orcid.org/0000-0001-9367-4853

Catalogue record

Date deposited: 15 May 2006
Last modified: 16 Mar 2024 03:25

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