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APPENDIX

The long term solution, with different rates of growth for patents and a dominant one, is given

by eqs. (78)-(80) and

( 8 9 ) * 1 1 8 l o g l o g 4 x x e T D T D D x =

8 µ p1 µ p1 (x4 x8 )µ p1

(84)

Dx4

1 1 3 1 1 s h β β =

1 1 3 1 1 2 x s m β β +

x3

1 1 4 1 1 β β +

x1

β11x4

E q u a t i o n ( 8 9 ) i s o b t a i n e d h a v i n g i n m i n d t h a t , i n t h i s c a s e , µ p 1 i s t h e r . o . g . o f P a t 1 1 a n d i s t maximum among those referred to country 1 patents flows. In this case all other terms h e

(

* 1 * 1 1 t t i p p i e T e P a t µ µ

µp1 ) present in eq. (83) disappear in the limit. For the same reason

Pat Pat * 11 * .1

1. The

remaining patents equations can be used to identify the maximum r.o.g. This completes the stability analysis.

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