Topic: Growth Through Intersectoral Knowledge Linkage

Speaker: Jie Cai, Assistant Professor in Economics, School of Economics, Shanghai University of Finance and Economics

Date: March 9th (Wednesday)

Time: 2:30-4:00pm

Location: Building 4, Room 101

Language: English

Abstract:

The majority of innovations are developed by multi-sector firms. The knowledge needed to invent new products is more easily adapted from some sectors than from others. Here, we study this network of knowledge linkages between sectors and its impact on firm innovation and aggregate growth. We first document a set of sector- and firm-level observations concerning knowledge applicability and firms' multi-sector patenting behavior. We then develop a general equilibrium model of multi-sector firm innovation in which intersectoral knowledge linkages determine a firm's self-selection into different sets of sectors and its R&D allocation across sectors. It captures how firms evolve in the technology space, accounts for cross-sector differences in R&D intensity, and describes an aggregate model of technological change. The model can match new observations as demonstrated by simulation. The model also yields new insights regarding the mechanism through which sectoral fixed costs of R&D reduce growth.

About the speaker:

Jie Cai is the assistant professor in economics at School of Economics, Shanghai University of Finance and Economics. Previously, Dr. Cai spent five years in school of economics at University of New South Wales as a lecturer. She received a Ph.D. in Economics from the University of British Columbia in 2010. Dr. Cai’s research interests include the innovation, international trade and firm dynamics, and dynamic network formation. She has articles published in the Review of Economics Studies.