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Knowledge creation and technology difusion: a framework to understand economic growth

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Author Info
Orlando Gomes () (Escola Superior de Comunicacao Social, Campus de Benfica, Instituto Politecnico de Lisboa (IPL))

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Abstract

The most influential explanations of economic growth along the past five decades rely on two main items: human capital accumulation and the dissemination of knowledge/technological diffusion. These items traditionally appear as separate growth sources. In this paper an integrated perspective is adopted. We begin by building a growth model where two goals regarding technological achievements are considered; economic agents simultaneously want to expand the theoretical knowledge frontier and to reduce the gap between ready-to-use techniques and potentially available knowledge. Considering an objective function that captures the two pointed goals, one develops an intertemporal optimization setup concerning a two sector scenario. The first sector adapts existent technology to productive uses, while the second is an education sector. In this way, we can study the close relationship between technical progress and human capital generation decisions under an intertemporal perspective.

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Publisher Info
Article provided by Ilades-Georgetown University, Economics Department in its journal Revista de Analisis Economico.

Volume (Year): 20 (2005)
Issue (Month): 2 (December)
Pages: 41-61
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Handle: RePEc:ila:anaeco:v:20:y:2005:i:2:p:41-61

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Related research
Keywords: Technology Human Capital Economic Growth Optimal Control Transitional Dynamics

Find related papers by JEL classification:
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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