Technological Changes in Economic Growth Theory: Neoclassical, Endogenous, and Evolutionary-Institutional Approach

Abstract

The aim of the research in this paper is to analyse the issue of the treatment of the category of technological changes within the main aspects of economic growth theory. The analysis of the key positions of neoclassical theory (Solow), endogenous approach (Romer), and evolutionary growth theory (Freeman) advocates has pointed to the conclusion that these approaches agree on the fact that the category of technological changes is a key generator of economic growth. Neoclassicists were the first to explicitly analyse the category of technological changes in growth theory. They exerted a strong influence on a large number of governments to allocate significant funds for scientific and research development, to stimulate the creation and diffusion of innovation. Supporters of endogenous theory also see the category of technological changes as a key driver of economic growth. Unlike neoclassicists, they emphasise the importance of externalities, in the form of technological spillover and research and development activities, for the creation and diffusion of innovation. Finally, evolutionary and institutional economists explore the category of technological changes inseparably from the economic and social environment in which they are created and diffused. Recommendations of this research can be of particular use to economic growth and development policy makers in the knowledge economy, whose basic and substantial feature is the so-called fourth industrial revolution

Evaluation of the Adaptability of the Ukrainian Economy to Changes in Prices for Energy Carriers and to Energy Market Risks

“…In general, the regularities of technological changes in the economy are sufficiently researched in the scientific literature [57,58]. In particular, the factors that determine these changes [59] and their regularities are investigated in some scientific works [60,61]. At the same time, the scientists give considerable attention to energy-saving technological changes, their influence on the rates and proportions of economic growth [62].…”

Influence of Energy-Saving Technological Changes on the Level of Innovativeness of Agro-Industrial Enterprises in the Conditions of Digitalization

“…Given the extremely important role that innovation plays in achieving competitive advantages by enterprises, improving the competitiveness of the firm requires the development of sound innovation strategies [2], in particular, strategies for technological change [3,4]. Currently, in many countries of the world, technological changes are the determining factor of economic growth [5,6]. Among technological changes that are made at the enterprises, it is necessary to emphasize resource-saving technological changes in which the main purpose is the increase of efficiency of use of the corresponding production resources of the enterprises [7,8].…”

Substantiation of projects that account for risk in the resource-saving technological changes at enterprises

“…However, authors of a paper [18] note it is necessary to take into account specificity of these projects, in particular the fact that changes in specific costs of resources for production of products occur and a share of the technological component of fixed assets of enterprises may increase due to technological changes. Also, technological changes can affect significantly a production yield of enterprises and act as a driving force of economic development [19].…”