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Reexamining the Interaction between Innovation and Capital Accumulation

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  • Jinli Zeng

    ()
    (National University of Singapore)

Abstract

In endogenous growth models with innovation and capital accumulation, Arnold (1998) and Blackburn, Hung and Pozzolo (2000) show that long-run growth of per capita income is independent of innovation activities; it is solely determined by preferences and the human capital accumulation technology. As a result, government policies do not affect long-run growth. This paper develops an endogenous growth model with innovation and (physical and human) capital accumulation to show that long-run growth depends on both innovation and capital accumulation technologies as well as on preferences and that government taxes and subsidies can have effects on the long-run growth rate.

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Bibliographic Info

Paper provided by National University of Singapore, Department of Economics in its series Departmental Working Papers with number wp0203.

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Length: 32 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:nus:nusewp:wp0203

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Keywords: Innovation; Capital accumulation; Long-run growth; Policy effects;

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Citations

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Cited by:
  1. Keiichi Kishi, 2013. "Dynamic analysis of wage inequality and creative destruction," Discussion Papers in Economics and Business 13-20, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  2. Sequeira, Tiago Neves, 2008. "On the effects of human capital and R&D policies in an endogenous growth model," Economic Modelling, Elsevier, vol. 25(5), pages 968-982, September.
  3. Katsuhiko Hori & Katsunori Yamada, 2011. "Education, Innovation, and Long-Run Growth," KIER Working Papers 798, Kyoto University, Institute of Economic Research.

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