Scribd Logo
Upload

Welcome to Scribd!

  • Competing Engines of Growth 2

    Uploaded by

    sfdfdsasadff
    7 views4 pages
    The document discusses how standardization and innovation both drive economic growth but can also conflict. It uses examples from biotech and computers to show how standardization lowers costs but also skill levels, while less standardization requires more skilled workers. The author argues an optimal policy balances high competition for standardized goods with limits on intellectual property rights and allows the costs of innovation and standardization to adjust dynamically.

    Original Description:

    Original Title

    Competing engines of growth 2

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses how standardization and innovation both drive economic growth but can also conflict. It uses examples from biotech and computers to show how standardization lowers costs but also skill levels, while less standardization requires more skilled workers. The author argues an optimal policy balances high competition for standardized goods with limits on intellectual property rights and allows the costs of innovation and standardization to adjust dynamically.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views4 pages

    Competing Engines of Growth 2

    Uploaded by

    sfdfdsasadff
    The document discusses how standardization and innovation both drive economic growth but can also conflict. It uses examples from biotech and computers to show how standardization lowers costs but also skill levels, while less standardization requires more skilled workers. The author argues an optimal policy balances high competition for standardized goods with limits on intellectual property rights and allows the costs of innovation and standardization to adjust dynamically.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Competing engines of growth:

    Innovation and standardization


    Daron Acemoglu

    1
    Economic growth

    Standardization Rate

    Skill of workers
    Standardization
    high is an engine of economic growth and
    low also a
    potential barrier. Cost of workers

    Daron Acemoglu
    high low
    Competition

    low high

    2
    Economic growth

    Standardization Rate

    Bio Tech Computers

    Industry Examples
    Bio Tech - Low standardization rate, high level of skilled workers, high cost of workforce
    Computer industry – More standardized, lower skill of workers and thus lower costs.

    3
    Optimal Policy
    I. No limits on cournot price

    II. High competition for standardized products

    III. Low IPR

    IV. Changes in the cost of innovation = changes in the cost of


    standardization (to keep optimal ratio of high vs low goods)

    You might also like