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Growth, Development, and Technological Change

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Author Info
Volker Grossmann () (University of Fribourg, CESifo and IZA)
Thomas M. Steger () (ETH Zurich and CESifo)

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Abstract

The theory of endogenous technical change has deeply contributed to our understanding of the fundamental sources of economic growth and development. In this chapter we survey important contributions in the field by focussing on the basic structure of endogenous growth models with horizontal as well as vertical innovation and emphasizing important implications for growth policy. We address issues like the scale effect problem, directed technological change to understand the evolution of wage inequality, long-run divergence between the innovating North and the imitating South due to inappropriate technology in the South, the relationship between trade and growth, competition and R&D, and the role of imperfect capital markets for R&D-based growth.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2558.

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Length: 68 pages
Date of creation: Jan 2007
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Handle: RePEc:iza:izadps:dp2558

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Related research
Keywords: endogenous technical change; economic growth; horizontal innovations; scale effects; vertical innovations;

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Find related papers by JEL classification:
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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