Innovation and Inequality in a Small World

Ines Lindner () and Holger Strulik
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Ines Lindner: VU Amsterdam and Tinbergen Institute, The Netherlands

No 17-057/II, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: We present a multi-country theory of economic growth and R&D-driven technological progress in which countries are connected by a network of knowledge exchange. Technological progress in any country depends on the state of technology in the countries it exchanges knowledge with. The diffusion of knowledge throughout the world explains a period of increasing world inequality after the take-off of the forerunners of the industrial revolution, followed by decreasing relative inequality. Knowledge diffusion through a Small World network produces an extraordinary diversity of country growth performances, including the overtaking of individual countries and the replacement of the technologically leading country in the course of world development.

Keywords: networks; knowledge diffusion; economic growth; world income distribution (search for similar items in EconPapers)
JEL-codes: D85 F43 O10 O40 (search for similar items in EconPapers)
Date: 2017-06-23
New Economics Papers: this item is included in nep-gro, nep-ino, nep-sbm, nep-soc and nep-tid
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Related works:
Journal Article: INNOVATION AND INEQUALITY IN A SMALL WORLD (2020)
Working Paper: Innovation and inequality in a small world (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20170057

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