Abstract

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.

Keywords

GrossmanIncentiveEconomicsProfit (economics)Product innovationIndustrial organizationInvestment (military)Technological changeInnovation economicsMicroeconomicsNeoclassical economicsMacroeconomics

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Publication Info

Year
1993
Type
article
Volume
60
Issue
239
Pages
373-373
Citations
6367
Access
Closed

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M. Scott Taylor, Gene M. Grossman, Elhanan Helpman (1993). Innovation and Growth in the Global Economy.. Economica , 60 (239) , 373-373. https://doi.org/10.2307/2554862

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DOI
10.2307/2554862