×

A dynamic model of optimal investment in research and development with international knowledge spillovers. (English) Zbl 1116.91063

Summary: We consider a two-country endogenous growth model where an economic follower absorbs part of the knowledge generated in a leading country. To solve a suitably defined infinite horizon dynamic optimization problem an appropriate version of the Pontryagin maximum principle is developed. The properties of optimal controls and the corresponding optimal trajectories are characterized by the qualitative analysis of the solutions of the Hamiltonian system arising through the implementation of the Pontryagin maximum principle.

MSC:

91B62 Economic growth models
49K15 Optimality conditions for problems involving ordinary differential equations
49N90 Applications of optimal control and differential games
PDFBibTeX XMLCite
Full Text: DOI Link

References:

[1] Hutschenreiter G Kaniovski Yu.M Kryazhimskii AV 1995 Endogenous growth, absorptive capacities, and international R&D spillovers IIASA Working Paper WP-95-92, International Institute for Applied Systems Analysis, Laxenburg, Austria
[2] Grossman GM, MIT Press (1991)
[3] Aseev S Hutschenreiter G Kryazhimskii A 2002 Dynamical model of opimal allocation of resources to R&D IIASA Interim Report IR-02-016. International Institute for Applied Systems Analysis, Laxenburg, Austria
[4] Aseev S Hutschenreiter G Kryazhimskii A 2002 Optimal investment in R&D with international knowledge spillovers WIFO Working Paper WP-175, Austrian Institute of Economic Research, Vienna, Austria
[5] Pontryagin LS, WileyInterscience (1962)
[6] DOI: 10.2307/1911976 · Zbl 0301.90009 · doi:10.2307/1911976
[7] Aseev SM Kryazhimskii AV Tarasyev AM 2001 First order necessary optimality conditions for a class of infinite-horizon optimal control problems IIASA Interim Report IR-01-007. International Institute for Applied Systems Analysis, Vienna, Austria
[8] DOI: 10.1016/0022-247X(83)90143-9 · Zbl 0517.49002 · doi:10.1016/0022-247X(83)90143-9
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.