Technological Change and the Creative Response: Inclusive Measures of Growth

Cristiano Antonelli () and Christophe Feder
Additional contact information
Cristiano Antonelli: Università degli Studi di Torino and BRICK

A chapter in Schumpeterian Legacy in Modern Times, 2026, pp 279-294 from Springer

Abstract: Abstract This chapter develops the Schumpeterian framework of the “creative response” and introduces an inclusive growth accounting methodology that captures the full range of effects of technological change on output. Extending the Solow approach to a Constant Elasticity of Substitution (CES) production function, the method distinguishes the conventional neutral (shift) effect from two non-neutral channels: (i) slope effects that modify input output elasticities (biased or directed technological change) and (ii) curvature effects that alter the elasticity of substitution between capital and labor. We derive closed-form measures that link evolving elasticities to factor reallocation and output, and we construct counterfactuals that isolate neutral, non-neutral, and overall technological contributions to GDP. Applied to the G7 over 1994–2019, the results show that standard growth accounting systematically understates the role of technological change: the neutral component has weakened in recent decades while non-neutral elements have provided stronger and more heterogeneous contributions to growth across countries. The findings highlight factor reallocation and evolving technological congruence as central mechanisms through which modern innovation affects aggregate outcomes.

Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:eccchp:978-3-032-26294-3_15

Ordering information: This item can be ordered from
http://www.springer.com/9783032262943

DOI: 10.1007/978-3-032-26294-3_15

Access Statistics for this chapter

More chapters in Economic Complexity and Evolution from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().