EconPapers    
Economics at your fingertips  
 

Technological opportunity, long-run growth, and convergence

Jakub Growiec and Ingmar Schumacher

No 2007057, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: We derive an R&D-based semi-endogenous growth model where technological progress depends on the available amount of technological opportunity. Incremental innovations provide direct increases in the knowledge stock but they reduce technological opportunity and thus the potential for further improvements. Technological opportunity can be renewed only by radical innovations (which have no direct impact on factor productivity). Investigating the model for its implications on economic growth leads to two basic observations. One, in the long-run, a balanced growth path with a constant and semi-endogenous long-run economic growth rate exists only in a specific knife-edge case which implies that technological opportunity and knowledge grow at equal rates. Two, the transition need not be monotonic. Specifically, we show under which conditions our model generates endogenous business cycles via complex dynamics without uncertainty.

Keywords: Technological opportunity; incremental innovation; radical innovation; endogenous business cycles; balanced growth; Andronov-Hopf bifurcation; complex dynamics (search for similar items in EconPapers)
JEL-codes: E32 O30 O41 (search for similar items in EconPapers)
Date: 2007-08-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://sites.uclouvain.be/core/publications/coredp/coredp2007.html (application/pdf)

Related works:
Journal Article: Technological opportunity, long-run growth, and convergence (2013) Downloads
Working Paper: Technological Opportunity, Long-Run Growth, and Convergence (2012) Downloads
Working Paper: Technological opportunity, long-run growth and convergence (2007) Downloads
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:cor:louvco:2007057

Access Statistics for this paper

More papers in LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Alain GILLIS ().

 
Page updated 2025-03-31
Handle: RePEc:cor:louvco:2007057