The example of Appendix 1 shows, however, that in a more general setting
where the arrival parameter A can vary from state to state, it is not always true
that an unambiguous improvement in the productivity of the research technol-
ogy will increase the economy's average growth rate. Instead, an increase in the
arrival parameter in one state can discourage research in other states by
increasing the rationally expected rate of creative destruction to such an extent
that the economy's average growth rate falls.