Endogenous innovation waves and economic growth

We propose a simple model where long waves of innovation arise from the endogenous propagation of information among industries. Innovators of each industry invest in internal R&D and eventually in the local search for information. We are going to show that some engage in local search while others do not, depending on the structural parameters of the single industries. By means of the localised search for information, a new technology introduced in a single industry can also be introduced in other industries, leading to a considerable degree of technological correlation, and eventually to long ranged waves of innovation. We also analyse the endogenous balanced growth path of the economy, and the short run fluctuations associated with it.