

An economist shows how imitation can sometimes beat innovation - bootload
http://www.gsb.stanford.edu/insights/chris-tonetti-economist-shows-how-imitation-can-sometimes-beat-innovation

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swatow
The problem with theory papers like this is you an prove anything with the
right model. Economics is not physics. It's very hard to create a model where
you get out more than you put in. So if you have some plausible idea, it's
almost certain you can formalize this as a mathematical model.

People attack classical economics as simplistic, but classical economics is
actually a very rare case where you can get an interesting or even counter
intuitive result from your assumptions.

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paulhauggis
Of course it makes sense for some countries. Some countries (IE: the US) have
the money to put up for research and development..and are willing to take the
risk. Once it's been proven, other countries (that don't have the money or are
unwilling to risk it), benefit from it.

