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Endogenous Innovation in the Theory of Growth

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  • Grossman, Gene M.
  • Helpman, Elhanan

Abstract

This paper makes the case that purposive, profit-seeking investments in knowledge play a critical role in the long-run growth process. First, the authors review the implications of neoclassical growth theory and the more recent theories of 'endogenous growth.' Then they discuss the empirical evidence that bears on the modeling of long-run growth. Finally, the authors describe in more detail a model of growth based on endogenous technological progress and discuss the lessons that such models can teach us.
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Suggested Citation

  • Grossman, Gene M. & Helpman, Elhanan, 1993. "Endogenous Innovation in the Theory of Growth," Foerder Institute for Economic Research Working Papers 275579, Tel-Aviv University > Foerder Institute for Economic Research.
  • Handle: RePEc:ags:isfiwp:275579
    DOI: 10.22004/ag.econ.275579
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial Economics;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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