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Innovation, structural change and demand evolution: does demand saturate?

Author

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  • Pier-Paolo Saviotti

    (Utrecht University
    GREDEG CNRS)

  • Andreas Pyka

    (University of Hohenheim)

Abstract

In this paper the exploration of the interaction mechanisms between the evolution of demand and the overall process of differentiation of the economic system is pursued in a twofold way: (i) the question is asked whether demand indeed saturates and whether such saturation is required for an ongoing economic development; (ii) the impact of the income distribution on the evolution of demand and thus on economic development is investigated. To study the existence and impact of demand saturation, Engel curves are calculated under different conditions. To study the impact of income distribution, TEVECON distinguishes within the population of the economic system two social classes, which differ in their level and quality of education, and thus for their human capital and wages.

Suggested Citation

  • Pier-Paolo Saviotti & Andreas Pyka, 2017. "Innovation, structural change and demand evolution: does demand saturate?," Journal of Evolutionary Economics, Springer, vol. 27(2), pages 337-358, April.
    • Handle: RePEc:spr:joevec:v:27:y:2017:i:2:d:10.1007_s00191-015-0428-2
    DOI: 10.1007/s00191-015-0428-2
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    Cited by:

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    2. Shu, Li & Wang, Wei, 2023. "Human capital and trademarks: Evidence from higher education expansion in China," Research Policy, Elsevier, vol. 52(10).
    3. Giovanni Dosi & Federico Riccio & Maria Enrica Virgillito, 2022. "Specialize or diversify? And in What? Trade composition, quality of specialization, and persistent growth [Catching up, forging ahead, and falling behind]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(2), pages 301-337.
    4. Matteo Deleidi & Walter Paternesi Meloni & Antonella Stirati, 2020. "Tertiarization, productivity and aggregate demand: evidence-based policies for European countries," Journal of Evolutionary Economics, Springer, vol. 30(5), pages 1429-1465, November.
    5. Matteo Deleidi & Walter Paternesi Meloni & Antonella Stirati, 2018. "Structural change, labour productivity and the Kaldor-Verdoorn law: evidence from European countries," Departmental Working Papers of Economics - University 'Roma Tre' 0239, Department of Economics - University Roma Tre.
    6. Andrea Coveri & Mario Pianta, 2019. "The Structural Dynamics of Income Distribution:Technology, Wages and Profits," Working Papers 1901, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
    7. Yoshinori Shiozawa, 2020. "A new framework for analyzing technological change," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 989-1034, September.

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    More about this item

    Keywords

    Demand; Innovation; Saturation; Income distribution; Engel curves;
    All these keywords.

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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