Innovation, Economic Transformation and Sustained Growth

Koki Hirota and Keiko Kubota
Additional contact information
Keiko Kubota: Tohoku Gakuin University, Department of Economics

Chapter Chapter 6 in Introduction to Quality Growth, 2026, pp 147-211 from Springer

Abstract: Abstract This chapter reviews and discusses the mechanisms and foundations of sustained growth. First, growth theory is briefly summarized, with an emphasis on the roles of capital, technology, and human resources. APEC advocates innovative growth and presents a strategy that emphasizes ICT. There are several different arguments regarding the impact of digital development on growth, including the view that some of its benefits cannot be captured by GDP. This argument may also be applied to the benefits of process innovation beyond ICT. Innovation is the key to growth, and technology “catch-up” is important for developing countries. To drive a country’s transformation through innovation, factors such as learning, infrastructure, and institutions can be considered crucial endowments. A review of the impact of fiscal, public debt, inflation, exchange rate, and trade policies and institutions on growth shows that sound economic policies support growth, but none can be identified as a sure determinant. Institutions are important for sustaining growth, and recent arguments have focused on their inclusiveness. However, some researchers contend that factors such as human resources, which build institutions, may be more important than the institutions themselves.

Keywords: Growth theory; Digital technology; Innovation; Macroeconomic policies; Trade policies; Institutions (search for similar items in EconPapers)
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:sprchp:978-981-95-6220-6_6

Ordering information: This item can be ordered from
http://www.springer.com/9789819562206

DOI: 10.1007/978-981-95-6220-6_6

Access Statistics for this chapter

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