Optimal feedbacks in techno-economic dynamics
by Alexander M. Tarasyev, C. Watanabe, B. Zhu
International Journal of Technology Management (IJTM), Vol. 23, No. 7/8, 2002

Abstract: The objective of this work is twofold: to design control strategies which optimise production, technology and their rates in a nonlinear model of economic growth; and to demonstrate the significance of this modelling approach by means of an empirical analysis. We formulate a problem of optimal R&D investment for a dynamic model, which binds production to technology. A discounted utility function, which correlates the amount of sales with the diversity in production, gives a criterion of optimality. We use the Pontryagin maximum principle for the design of an optimal nonlinear dynamics. On the basis of the theoretical analysis, we carry out an empirical analysis, which attempts to demonstrate the practical significance of the approach. For Japan's major manufacturing sectors, we compare optimal and actual levels of R&D intensities and identify sources of ''pseudo innovation'' in high-tech industries

Online publication date: Thu, 10-Jul-2003

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology Management (IJTM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com