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Innovation Economy, Productive Public Expenditures and Economic Growth

Author

Listed:
  • Oscar Afonso

    (Universidade do Porto - CEFUP)

  • Sara Monteiro

    (Nice Sophia Antipolis University - CEMAFI)

  • Maria Thompson

    (University of Minho - NIPE)

Abstract

Innovation is the main engine of growth in an increasing number of economies. Innovation economies are, according to the Quadruple Helix (QH) Innovation Theory, sustained by four pilars – Firms, Academia, Government and Consumers –, all operating in a systemic, interactive environment. We provide a model that gives analytical body to the QH theory and links formally innovation to economic growth. We aim to emphasise the equally important roles of the four helices sustaining an innovation economy and its long run growth. In particular, given the downwards pressure on Government expenditures, we analyse the effects of an increase in public expenditures on economic growth, which we find positive in the short, medium and long-run.

Suggested Citation

  • Oscar Afonso & Sara Monteiro & Maria Thompson, 2012. "Innovation Economy, Productive Public Expenditures and Economic Growth," NIPE Working Papers 13/2012, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:13/2012
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    3. Rosas Martínez, Víctor Hugo, 2022. "A theoretical Assessment: The Limit of Governmental Expenditures or Investments on Economic Growth," MPRA Paper 114698, University Library of Munich, Germany.

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    More about this item

    Keywords

    Innovation Economy; Consumers; Quadruple Helix; Productive Public Expenditures; Economic Growth;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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