01783cas a2200253 a 4500 AALejournalIMF015897 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513512518 1018-5941 BD-DhAAL BD-DhAAL Piazza, Roberto. Innovate to Lead or Innovate to Prevail : When do Monopolistic Rents Induce Growth? / Roberto Piazza, Yu Zheng. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (56 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper extends the Schumpeterian model of creative destruction by allowing followers' cost of innovation to increase in their technological distance from the leader. This assumption is motivated by the observation the more technologically ad- vanced the leader is, the harder it is for a follower to leapfrog without incurring extra cost for using leader's patented knowledge. Under this R and D cost structure, leaders innovate to increase their technological advantage so that followers will eventually stop innovating, allowing leadership to prevail. A new steady state then emerges featuring both leaders and followers innovating in few industries with low aggregate growth. Mode of access: Internet Zheng, Yu. IMF Working Papers; Working Paper ; No. 2019/294 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/294/001.2019.issue-294-en.xml IMF e-Library