Bandeira, Ana M.Afonso, Oscar2014-01-162014-01-162012Afonso and Bandeira, 2012http://hdl.handle.net/10400.22/3324In the standard Schumpeterian-growth models only follower firms invest in R&D activities and larger economies grow faster. Since these results are counterfactual, this paper reveals that leader firms often support R&D activities and economic growth can be independent of the market size. In particular, the maintenance of R&D leadership increases with: (i) the technological-knowledge gap between leader and followers, since a firm-specific learning effect of accumulated technological knowledge from past R&D is considered, (ii) the leaders’ strategies that delay the next successful R&D supported by some follower firm, (iii) the market size, and (iv) the up-grade of each innovation.engjournal article10.1111/j.1467-9957.2011.02264.x