Economic Growth Theory

Chapter 9 Research and Learning by Doing

The traditional emphasis on the accumulation of conventional inputs of labor and capital in growth theory as the primary force behind growth proved invalid for revealing complexity of modern economic growth. Human capital, technological change through innovations, knowledge growth, institutions, and cultural values, have been slowly but steady introduced into formal economic growth theory. This chapter examines traditional territories from some new perspectives and explores new trends with new concepts and analytical tool. In this chapter, we consider a two-sector economy, a good-producing sector where output is produced, and a university where additions to the stock of knowledge are made. In contrast ...