economic development and growth of the metropolitan cities. This paper uses a four-point 2002, 2007, 2012 and 2017 as the latest employment data available and a five-year interval is used as optimal data in terms of capturing potential structure change in the local economy of the coastal metropolitan cities in South Africa. Findings of this paper show that sub-industries in the manufacturing and service sectors have been the main drivers of the economic development in these metropolitan cities. Despite the creation of new technology, new business and new jobs to spearhead economic development in South Africa, the results obtained from this study indicate that some of these metropolitan cities are actually characterised by economic stagnation in some of their sub-industries that are supposed to be the key role players in economic growth.
There is no generally accepted method of measuring performance of an innovation system. The measurement of the performance of an innovation system influences policy decisions for the improvement of such a system and makes comparisons possible. The question arises how the complexity of an innovation system should be addressed in the measurement of the performance of the system. A descriptive analysis is made of empirical studies that measured innovative performance. The use of composite indicators has become more popular. Unfortunately, many existing indices that intend to measure innovative performance comprise capacity and performance indicators where they should rather focus on performance indicators such as innovation count and innovation surveys. JEL B52, O30
The role of innovation in economic growth is perceived differently by the different schools of thought. The neoclassical theories emphasise equilibrium in the economy and cannot explain the role of innovation, because the effect of innovation is actually a disturbance of equilibrium. Schumpeter (1961) has shown that growth and development can only take place if the economy is constantly disturbed to an out-of-equilibrium phase. In some of the later neoclassical theories, innovation was considered as a factor that causes growth, but was treated as an exogenous factor. The "new growth theories" were developed later, including innovation as an endogenous factor, but these theories were still based on the equilibrium principle. In the Schumpeterian and neoSchumpeterian theories, innovation is treated as endogenous to the economy. Schumpeter had not been acknowledged as a mainstream economist during the time that he developed and first published his theory. It was not until the 1980s that economists started paying attention to his works and to the importance of innovation in development. The aim of this article is to determine how the studies since 1980 have changed regarding their foundation in the different schools of thought. A methodological and theoretical review is conducted of post 1980 empirical studies that determined the relationship between innovation and economic development. It was found that many empirical studies still make use of neoclassical equilibrium models and that the studies that consider the complexity of the innovation system are not yet sufficiently developed to explain the relationship between innovation and economic development.
JEL Codes: B52 and O30
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