Schumpeterian growth is a particular type of economic growth that is based on the endogenous introduction of new products and/or processes and is governed by the process of creative destruction described by Joseph Schumpeter (1942). This paper provides an exposition of the scale-effects property in the context of Schumpeterian growth models. In particular, the paper outlines the three distinct solutions to the scaleeffects problem, discusses their implications and offers an assessment of scale-invariant Schumpeterian growth models.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.