The dynamics of firms in a micro-to-macro model: The role of training, learning and innovation

Date

1997-12-01

Author

Ballot, G
Taymaz, Erol

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We analyze the co-evolution of the performances of firms and of the economy in an evolutionary micro-to-macro model of the Swedish economy. The model emphasizes the interactions between human capital (or competences) and technological change at the firm level and their effects;on aggregate growth, taking into account the micro-macro feedbacks. The model features learning-by-doing, incremental and radical innovations, user-producer learning at the firm level, and a change in the techno-economic paradigm. We find that there is an optimal sequence for the firm to allocate their resources: (1) build a general human capital stock before the change in the techno-economic paradigm, (2) spend on R&D, and (3) invest in specific human capital. Innovators fare better than imitators on average, not only because they innovate, but also because they build a competence base, which supports the learning from other firms.

Subject Keywords

Economics and Econometrics, General Business, Management and Accounting

URI

https://hdl.handle.net/11511/38032

Journal

JOURNAL OF EVOLUTIONARY ECONOMICS

DOI

https://doi.org/10.1007/s001910050052

Collections

Department of Economics, Article

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Citation Formats

G. Ballot and E. Taymaz, “The dynamics of firms in a micro-to-macro model: The role of training, learning and innovation,” JOURNAL OF EVOLUTIONARY ECONOMICS, pp. 435–457, 1997, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/38032.