Economic Theory

, Volume 59, Issue 2, pp 401–433 | Cite as

Leapfrogging cycles in international competition

  • Yuichi FurukawaEmail author
Research Article


Technological leadership has shifted at various times from one country to another. We propose a mechanism that explains this perpetual cycle of technological leapfrogging in a two-country model including the dynamic optimization of an infinitely lived consumer. In the model, each country accumulates knowledge stock over time because of domestic innovation and spillovers from foreign innovation. We show that if the international knowledge spillovers are reasonably efficient, technological leadership may shift first from one country to another, and then alternate between countries along an equilibrium path.


Perpetual leapfrogging Innovation cycles Growth cycles Endogenous innovation Knowledge spillovers 

JEL Classification

E32 F44 O33 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.School of EconomicsChukyo UniversityNagoyaJapan

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