Innovation and Growth: A Technical or Entrepreneurial Residual?
2013 (English)In: Innovation and Growth: From R&D Strategies of Innovating Firms to Economy-wide Technological Change / [ed] Martin Andersson, Börje Johansson, Charlie Karlsson, and Hans Lööf, Oxford University Press, 2013Chapter in book (Refereed)
Innovation is increasingly viewed as the key to elevate prosperity and secure sustainable long-run growth. The last decades have witnessed a refinement of previous growth models to include also investments in education by individuals and R&D by firms. Better educated individuals and increased expenditure on R&D is then shown to result in innovations and accelerated growth. The issues discussed in this chapter refer to how innovative opportunities arise and are exploited, whether the normative conclusions of contemporary growth models are derived from a realistic micro-economic setting, and suggestions as to how these models can be improved in order to provide appropriate guidance for policy-makers. More precisely, there seems to be a missing link between the production of knowledge and its conversion to societal economic value. Whereas the neoclassical growth model attributed knowledge production to an exogenous 'technical residual', current knowledge based growth models assume the diffusion of to take place exogenously or can be attributed an 'entrepreneurial residual'.
Place, publisher, year, edition, pages
Oxford University Press, 2013.
Entrepreneurial residual, Growth model, Knowledge, R&D, Technical residual
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-163605DOI: 10.1093/acprof:oso/9780199646685.003.0013ScopusID: 2-s2.0-84920495741ISBN: 9780191748998ISBN: 9780199646685OAI: oai:DiVA.org:kth-163605DiVA: diva2:801871
QC 201504102015-04-102015-04-092015-04-10Bibliographically approved