Journal of Political Economy Vol. 84 No. 2 1976
A Stochastic Model of Applied Research
Abstract
A mathematical model of applied research is formulated. It views applied research as a search in a given distribution; basic research shifts the distribution searched. The productivity of applied research effort is a function of the gap between technology in practice and basic knowledge. With constant basic and applied research a (stochastic) steady state emerges in which technological change is determined by the rate of progress of basic knowledge, and the technological gap by the level of applied research.
- Volume
- 84
- Issue
- 2
- Pages
- 265-281
- Sources
- bibtex:phds-export.bib