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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
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Innovation, Reallocation, and Growth, American Economic Review 11 (November) (2018). Acemoglu, Daron; Akcigit, Ufuk; Alp, Harun; Bloom, Nicholas; Kerr, William


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Acemoglu, Daron; Akcigit, Ufuk; Alp, Harun; Bloom, Nicholas; Kerr, William 
Number of authors
Status Published
Year of publication 2018 
Date 15.11.2018 
Name of article Innovation, Reallocation, and Growth 
Name of journal American Economic Review
Volume of issue 108 
Number of issue 11 (November) 
Pages 3450-91 
Abstract We build a model of firm-level innovation, productivity growth, and reallocation featuring endogenous entry and exit. A new and central economic force is the selection between high- and low-type firms, which differ in terms of their innovative capacity. We estimate the parameters of the model using US Census microdata on firm-level output, R&D, and patenting. The model provides a good fit to the dynamics of firm entry and exit, output, and R&D. Taxing the continued operation of incumbents can lead to sizable gains (of the order of 1.4 percent improvement in welfare) by encouraging exit of less productive firms and freeing up skilled labor to be used for R&D by high-type incumbents. Subsidies to the R&D of incumbents do not achieve this objective because they encourage the survival and expansion of low-type firms.
Free text descriptor in Finnish yritykset; innovaatiot; tuottavuus; R&D 
Free text descriptor in English innovation; R&D; firms; productivity 
JEL-codes D21, D24, H25, L52, O31, O34 
ISSN / e-ISSN 0002-8282 
auki Internet addresses