Endogenous Innovation in the Theory of Growth
38 Pages Posted: 25 May 2006 Last revised: 7 Apr 2010
Date Written: November 1993
This paper makes the case that purposive, profit-seeking investments in knowledge play a critical role in the long-run growth process. First, we review the implications of neoclassical growth theory and the more recent theories of 'endogenous growth'. Then we discuss the empirical evidence that bears on the modeling of long-run growth. Finally, we describe in more detail a model of growth based on endogenous technological progress and discuss the lessons that such models can teach us.
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