This paper argues that many new production techniques have been developed by a process called 'collective invention'. When firms collectively invent, they make available to their competitors the results of new plant designs so that their competitors can incorporate extensions of those designs into new facilities they build. The paper analyses the implications of this behavior for the rate and bias of technical change and discusses reasons why this behavior might occur.
ASJC Scopus subject areas
- Economics and Econometrics
- Organizational Behavior and Human Resource Management