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Ideas for Growth?

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Author Info
David C. Maré () (Motu Economic and Public Policy Research)

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Abstract

There is much talk of the knowledge economy, and the central role of ideas and knowledge in generating economic growth. This paper provides a brief review of the economic literature on how skills/ knowledge/ ideas might contribute to higher output or higher rates of growth. Ideas are complementary inputs into production, in the sense that they raise the productivity of other inputs. Some of the complementarities may give rise to externalities-effects that do not have to be paid for. For investments in ideas to generate output growth, these complementarities must be particularly strong. I conclude with some comments on what policy makers can draw from the literature, which is some encouragement but little specific guidance.

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File URL: http://motu-www.motu.org.nz/wpapers/03_19.pdf
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Publisher Info
Paper provided by Motu Economic and Public Policy Research in its series Working Papers with number 03_19.

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Length: 26 pages
Date of creation: Jul 2003
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Handle: RePEc:mtu:wpaper:03_19

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Web page: http://www.motu.org.nz
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Related research
Keywords: Economic growth; Endogenous growth models; Innovation;

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Find related papers by JEL classification:
E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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