How much does innovation matter for economic growth?

Abstract

Purpose – The aim of this paper is to gain new insight on the determinants of economic growth. More precisely, it disentangles the contribution of an increase in the stock of ideas that exceeds the rate of growth in the steady state and the growth inherent to the steady state. Design/methodology/approach – Following Romer (1990) and Jones (2000, 2002) this paper uses an aggregate production function. The paper also models the evolution of the stock of ideas following the generalisation of Jones (1995). The analysis decomposes growth utilising the estimated parameters inherent to the ideas function. Findings – This article presents a growth accounting exercise that estimates total factor productivity for three Southern European economies. Systematic comparison of the countries illustrates the importance of innovation for economic growth. This exercise shows the main growth patterns over the last 50 years, and highlights the principal determinants by specifying an ideas function. Originality/value – This study yields recent timeframe for explaining per capita income variations within economies and observed differences across economies.

Entrepreneurship culture, total factor productivity growth and technical progress: Patterns of convergence towards the technological frontier

“…This has not been the case, and a way to overcome this prediction is by imposing In our work we follow Jones' approach, considering that the evidence is clear on this issue, and then we estimate a technical progress function assuming decreasing returns to scale in knowledge. However, relying basically on the results of Myro et al (2008) and Colino et al (2013) we consider that the mechanism Jones uses to capture the diffusion of knowledge throughout the world (i.e. total research employment in G-5 countries) is not appropriate and needs to be improved.…”

Crossing Cultures: Guides and Models for Development, Selection, and Application

“…A careful individual will see that much of the dichotomous thinking about selfish genes and economic self-interest logic versus societal collaborations and greater good sacrifices can be reconciled and better understood when one considers the benefits of reciprocity that cultural norms provide. Yes, innovations and collaborations follow self-interest (Colino, Benito-Osorio, & Armengot, 2014;Collins, 2001Collins, , 2003. A "moral life is really about cooperation and alliances, rather than about power and domination.…”

Untitled

“…Innovation involves exploiting change opportunities, and every organization, business, university, church, labor union, doctor, or hospital loses or may quickly go down if it fails to innovate. The failure to innovate is the largest reason for organizational and personal decline (Drucker, 1985); Colino et al (2014); .…”