Working Paper: NBER ID: w3869
Authors: Elhanan Helpman
Abstract: The paper focuses on the innovation-based approach to endogenous growth. It begins by spelling out conditions for sustained long-run growth in neoclassical economies and uses these conditions as a standard of comparison for the conditions required to sustain long-run growth in economies with product innovation. It presents two models of product innovation that can sustain growth in the long run. The models share the same fundamental mechanism of economic growth. They are used to derive a variety of implications relating structural features to long-run growth rates and they are then applied to a number of policy issues. The usefulness of the approach represented by these models is examined by considering a number of issues, such as unemployment and trade relations.
Keywords: endogenous growth; innovation; R&D; economic growth
JEL Codes: O41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| R&D (O32) | productivity (O49) |
| productivity (O49) | economic growth (O49) |
| R&D (O32) | economic growth (O49) |
| product innovation (O35) | economic growth (O49) |
| R&D spillovers (O36) | social returns (I26) |