The Aggregate Effects of the Decline of Disruptive Innovation
Richard Bräuer
IWH Discussion Papers,
No. 22,
2023
Abstract
This paper proposes a model that explains both recently documented facts about the decline of disruptive innovation and the decline in productivity growth as the result of large firms trying to monopolize technologies by poaching inventors from disruptive activities. To come to this conclusion, the paper builds an endogenous growth model with inventor labor markets on which firms can interact strategically. To inform this model, I perform an event study of the effect of disruptive inventions on their technology fields using PATSTAT (1980-2010). I document that technology classes without disruption slowly trend towards incrementalism and that after a disruption, more patents get registered and research becomes less incremental.
Read article
Department Profiles
Research Profiles of the IWH Departments All doctoral students are allocated to one...
See page
Department Profiles
Research Profiles of the IWH Departments All doctoral students are allocated to one...
See page
Productivity
Productivity: More with Less by Better Available resources are scarce. To sustain our...
See page
EVA-KULT
EVA-KULT Establishing Evidence-based Evaluation Methods for Subsidy Programmes in...
See page
LRF Research Profile
Research Profile of the Department of Laws, Regulations and Factor Markets The ...
See page
IWH FDI Micro Database
IWH FDI Micro Database The IWH FDI Micro Database (FDI = Foreign Direct...
See page
CompNet Database
The CompNet Competitiveness Database The Competitiveness Research Network (CompNet)...
See page
Centre for Evidence-based Policy Advice
Centre for Evidence-based Policy Advice (IWH-CEP) ...
See page