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Human Capital, R&D and Economic Growth

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  • Sjögren, Anna

    () (Dept. of Economics, Stockholm School of Economics)

Abstract

People go to school and firms do R&D. These activities result in human capital accumulation and new ideas and technologies which make economies grow. We try to capture the interaction between human capital and R&D by allowing for endogenous human capital accumulation in an economy where the number of products and technologies expands because profit maximizing entrepreneurs do R&D. We find that, in the absence of scale effects, long run growth is determined by the capacity to accumulate human capital. A relative lack of R&D capital causes the economy to grow slowly during its transition to the steady state, while a relative abundance of R&D capital gives high growth rates during transition.

Suggested Citation

  • Sjögren, Anna, 1998. "Human Capital, R&D and Economic Growth," SSE/EFI Working Paper Series in Economics and Finance 238, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0238
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    References listed on IDEAS

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    More about this item

    Keywords

    human capital; R&D; endogenous growth; scale effects; transitional dynamics;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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