New Directions in Schumpeterian Growth Theory

Abstract

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.

Defensive strategies in quality ladders

“…The necessity of this condition comes from the fact that any credible commitment of a high R&D e¤ort depends on the capability of the leader to perform, at least, a positive amount of R&D when free entry is possible. Equation (13) o( j! 1 ) : Putting these elements together yields the credibility condition (14).…”

A north–south model of intellectual property rights protection and skill accumulation

“…6 For further discussion of the implications of the scale effects property for the first vintage of R&D-based endogenous growth models, see in particular Jones (1999), Dinopoulos and Thompson (1999) and Dinopoulos and Sener (2004). 7 In this model I do not take into account the issue of the "leader" and "follower" in the innovation sector (see Grossman and Helpman (1991) for details).…”

Gradual Product Replacement, Intangible-Asset Prices and Schumpeterian Growth

“…We would like to mimic an S-curve diffusion process, provide tractability, and generalize the Schumpeterian approach to economic growth. In order to meet our goals, we 9 Jones (1999) and Dinopoulos and Thompson (1999) and Dinopoulos and Sener (2004) provide more details for the implications of the scale-effects property for early R&D-based growth models and describe recent attempts to develop models of growth without scale effects. In a previous version of the paper we analyzed a different specification of (8) which states that the level of R&D difficulty is proportional to the level of population, i.e., X(x, t) = kN(t) and results in permanent growth effects.…”