Endogenous Innovation in the Theory of Growth

Эндогенные инновации в теории роста
Gene M. Grossman, Elhanan Helpman
1994-02-01

Endogenous growthEndogenous technological progressKnowledge investmentsLong-run economic growthNeoclassical growth theory
This paper makes the case that purposive, profit-seeking investments in knowledge play a critical role in the long-run growth process. First, the authors review the implications of neoclassical growth theory and the more recent theories of ‘endogenous growth.’ Then they discuss the empirical evidence that bears on the modeling of long-run growth. Finally, the authors describe in more detail a model of growth based on endogenous technological progress and discuss the lessons that such models can teach us.
1
A model is developed in which technological progress arises endogenously from investment and is used to derive lessons about sustained growth.
2
Empirical evidence relevant to modeling long-run growth is examined to assess theoretical explanations.
3
Purposive, profit-seeking investment in knowledge is identified as a critical driver of long-run economic growth.
4
The paper reviews how neoclassical and endogenous-growth theories explain long-run growth and contrasts their implications.

Long-run economic growth driven by endogenous technological progress (models of growth based on purposive, profit-seeking investments in knowledge)

the role of purposive, profit-seeking investment in knowledge and endogenous technological progress in the long-run growth process

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1994-02-01
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Authors
Gene M. Grossman
Elhanan Helpman
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