Innovative and absorptive capacity effects of education in a small open economy

Brita Bye and Taran Fæhn (brita.bye@ssb.no)
Additional contact information
Taran Fæhn: Statistics Norway, https://www.ssb.no/en/forskning/ansatte

Discussion Papers from Statistics Norway, Research Department

Abstract: Evidence points to relatively low supply elasticities for workers skilled for research and development (R&D), which can hamper innovation and growth. Increasing the supply of R&D skills will expand an economy's innovative capacity. A simultaneous effect of increased education, which is particularly important for small, open economies, is to raise final goods producers' capacity to absorb cross-border knowledge spillovers. In a calibrated endogenous growth model for Norway, we find that increasing the share of highly educated workers has pronounced absorptive capacity effects that partially crowd out R&D-based innovation. Both innovative and absorptive capacity expansions contribute to higher growth and welfare.

Keywords: Absorptive capacity; Computable general equilibrium model; Endogenous growth; Human capital; Innovation; Research and Development (search for similar items in EconPapers)
JEL-codes: O30 O41 (search for similar items in EconPapers)
Date: 2012-06
New Economics Papers: this item is included in nep-dge, nep-edu, nep-fdg, nep-ino, nep-knm and nep-sbm
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.ssb.no/a/publikasjoner/pdf/DP/dp694.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssb:dispap:694

Access Statistics for this paper

More papers in Discussion Papers from Statistics Norway, Research Department P.O.Box 8131 Dep, N-0033 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by L Maasø (lma@ssb.no).