This paper investigates the interaction between technological leadership
and spillovers through a theoretical model where technological followers benefit
from spillovers from a technological leader. Simulations of the model show
that technological leadership is persistent and history dependent. A more patient
nation may choose to remain behind an impatient technological leader
in order to benefit from spillovers. The result is lower steady state growth
than would occur if the more patient nation took leadership. The probability
of a persistent, impatient leader is higher the more easily technology flows
between nations.