?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpure.iiasa.ac.at%2Fid%2Feprint%2F4504%2F&rft.title=Endogenous+Growth%2C+Absorptive+Capacities+and+International+R+%26+D+Spillovers&rft.creator=Hutschenreiter%2C+G.&rft.creator=Kaniovski%2C+Y.M.&rft.creator=Kryazhimskiy%2C+A.V.&rft.description=Interaction+between+own+research+and+externally+produced+knowledge+has+been+observed+both+at+the+firm+and+the+macro+level.++This+paper+intends+to+fill+a+gap+between+endogenous+growth+models+which+treat+knowledge+capital+as+either+a+purely+national+or+global+public+good.+As+a+generalization%2C+we+introduce+%22absorptive+capacities%22+of+a+smaller+country+%22tapping%22+the+knowledge+stock+of+a+larger+autarkic+country+(the+technological+leader%2C+evolving+along+its+steady+state)+by+means+of+own+investment+in+R%26D+into+an+endogenous+growth+model+with+brand+proliferation+due+to+Grossman+and+Helpman.+The+asymptotic+behavior+of+the+ensuing+non-linear+dynamic+model+is+analyzed+in+detail.+Long-run+solutions+for+the+variables+representing+the+evolution+of+the+follower+country+are+compared+with+the+perfect-autarky+steady+states+for+both+countries.+Along+a+trajectory+consistent+with+perfect+foresight+in+the+valuation+of+the+firm%2C+the+follower's+long-run+rate+of+innovation+approaches+that+of+the+leader+which+implies+an+improvement+in+the+long-run+innovative+and+growth+performance+of+the+follower+as+measured+against+the+perfect+autarky+benchmark.+The+limit+ratio+of+the+knowledge+stocks+originating+in+the+two+countries+is+calculated+explicitly.+The+present+model+is+richer+in+its+dynamic+behavior+than+the+basic+model+of+brand+proliferation.+Unlike+the+basic+model%2C+an+originally+stagnant%2C+non-innovating+follower+economy+might+still+be+able+to+embark+on+an+equilibrium+trajectory+with+ongoing+innovation%2C+in+particular+when+it+is+linked+informationally+to+a+rapidly+innovating+leader.+The+model+accounts+for+a+number+of+observed+facts+about+international+economic+growth.+Perfect-foresight+trajectories+resulting+in+catching+up+and+secular+changes+in+leadership+by+taking+over+in+terms+of+knowledge+stocks+and+total+factor+productivity+are+generated+by+the+present+model+under+well-defined+conditions.+At+the+same+time%2C+the+opportunities+of+catching+up+and+taking+over+are+shown+to+be+limited+in+the+sense+that+the+backward+and+forward+time-lags+vis-a-vis+the+leader+tend+to+finite+values.+While+long-run+rates+of+innovation+and+growth+are+equalized%2C+implicit+transitional+growth+differentials+give+rise+to+statements+about+convergence+(or+divergence)+across+countries+depending+on+the+set+of+conditions+prevailing+in+the+two+countries+initially.&rft.publisher=WP-95-092&rft.date=1995-09&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpure.iiasa.ac.at%2Fid%2Feprint%2F4504%2F1%2FWP-95-092.pdf&rft.identifier=++Hutschenreiter%2C+G.+%3Chttps%3A%2F%2Fpure.iiasa.ac.at%2Fview%2Fiiasa%2F1336.html%3E%2C+Kaniovski%2C+Y.M.+%3Chttps%3A%2F%2Fpure.iiasa.ac.at%2Fview%2Fiiasa%2F2009.html%3E%2C+%26+Kryazhimskiy%2C+A.V.+%3Chttps%3A%2F%2Fpure.iiasa.ac.at%2Fview%2Fiiasa%2F1393.html%3E++(1995).++Endogenous+Growth%2C+Absorptive+Capacities+and+International+R+%26+D+Spillovers.+++IIASA+Working+Paper.+IIASA%2C+Laxenburg%2C+Austria%3A+WP-95-092+++++