Never-ending Search for Innovation
General Economics
2025-03-03 v2 Economics
Abstract
We provide a model of investment in innovation that is dynamic, features multiple heterogeneous research projects of which only one potentially leads to success, and in each period, the researcher chooses the set of projects to invest in. We show that if a search for innovation starts, it optimally does not end until the innovation is found -- which will be never with a strictly positive probability.
Cite
@article{arxiv.2412.03227,
title = {Never-ending Search for Innovation},
author = {Jean-Michel Benkert and Igor Letina},
journal= {arXiv preprint arXiv:2412.03227},
year = {2025}
}