Innovation and growth in the global economy

Author(s)

Bibliographic Information

Innovation and growth in the global economy

Gene M. Grossman and Elhanan Helpman

MIT Press, c1991

  • : hb
  • : pbk

Available at  / 101 libraries

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Note

Bibliography: p. [343]-350

Includes index

Description and Table of Contents

Volume

: hb ISBN 9780262071369

Description

Traditional growth theory emphasizes the incentives for capital accumulation rather than technological progress; innovation is treated as an exogenous process or a by-product of investment in machinery and equipment. Grossman and Helpman develop an approach in which innovation is viewed as a deliberate outgrowth of investments in industrial research by forward looking, profit-seeking agents. They also devote attention to the place of international trade in the growth process, including the transmission of innovations from the industrial economies to the IDCs. Grossman and Helpman provide an overview of recent analyses of innovation and growth, expanding the available formal theory in a number of ways. They develop straightforward theoretical models that treat innovation as the outgrowth of costly investments in industrial competitive conditions in national and international product markets. Since firms in different countries race to bring out new products, growth processes are linked by international technological competition. An important aspect of Grossman and Helpman's study, is that they focus on the growth process of a country that operates in a global economy. They allow comparative advantage to be created endogenously in the industrial research laboratory but look at the dynamic determinants in the pattern of trade and the interactions between trade and growth. One chapter is devoted entirely to how economic integration affects a country's innovation and growth, while another studies the effects of national policies in an international environment. The final two chapters take up interaction between the processes of innovation in the industrialized North and imitation in the middle income South.

Table of Contents

  • Part 1 Growth and technology: facts about growth, the contribution of industrial innovation
  • technology as an economic commodity
  • method and organization of the book. Part 2 Traditional growth theory: solow
  • optimal savings
  • learning by doing
  • basic research. Part 3 Expanding product variety: brand proliferation
  • public knowledge capital
  • industrial policies
  • welfare. Part 4 Rising product quality: the basic model
  • endogenous quality increments
  • welfare. Part 5 Factor accumulation: physical capital
  • human capital
  • country size and resource composition. Part 6 Small open economy: a model with nontraded intermediates
  • trade and growth
  • trade and welfare
  • international capital flows
  • international knowledge flows. Part 7 Dynamic comparative advantage: international brand proliferation
  • international quality competition
  • multinational corporations
  • patent licensing. Part 8 Hysteresis: a benchmark economy
  • steady states
  • equal-wage trajectories
  • unequal-wage trajectories
  • R&D subsidies. Part 9 Trade and growth: diffusion of knowledge
  • trade between similar countries
  • trade with uneven innovation
  • trade between dissimilar countries. Part 10 international transmission of policies: quality upgrading - a graphical treatment
  • R&D subsidies
  • production subsidies
  • trade policies. Part 11 Imitation: a model of imitation
  • steady-state equilibrium
  • determinants of innovation and imitation
  • determinants of relative wages. Part 12 Product cycles: imitation with rising product quality
  • steady-state equilibrium
  • efficient followers
  • inefficient followers. Part 13 Lessons about growth.
Volume

: pbk ISBN 9780262570978

Description

Grossman and Helpman develop a unique approach in which innovation is viewed as a deliberate outgrowth of investments in industrial research by forward-looking, profit-seeking agents. Traditional growth theory emphasizes the incentives for capital accumulation rather than technological progress. Innovation is treated as an exogenous process or a by-product of investment in machinery and equipment. Grossman and Helpman develop a unique approach in which innovation is viewed as a deliberate outgrowth of investments in industrial research by forward-looking, profit-seeking agents.

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