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The Impact of Technology on Economic Growth: Some New Ideas and Empirical Considerations

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  • De Loo, Ivo
  • Soete, Luc

    (MERIT)

Abstract

R&D based models relating technical change and economic growth have been unsuccessful in explaining the recent productivity paradox: R&D efforts have risen continuously in advanced countries during the postwar period whereas productivity growth has, if anything, declined. Several explanations of the paradox are offered, together with empirical ways of testing them. The notion that R&D efforts are more and more attributed to product differentiation, thus enlarging consumers'' welfare while simultaneously exhibiting only limited effects on economic growth, looks very promising in explaining the productivity paradox.

Suggested Citation

  • De Loo, Ivo & Soete, Luc, 1999. "The Impact of Technology on Economic Growth: Some New Ideas and Empirical Considerations," Research Memorandum 017, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:1999017
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    Cited by:

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    2. Mahmoud AL-Refai & Samer Abdelhadi & Adli Al-Qaraein, 2016. "The Impact of Technological Development on Jordanian Industrial Sector," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(4), pages 291-291, March.
    3. Ady Soejoto & Hendry Cahyono & Ni'matush Solikhah, 2017. "Effect of Solow Variable to the Economic Growth in Southeast Asia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 277-282.

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