Growth and Innovation in the Presence of Knowledge and R&D Accumulation Dynamics
Michael Verba, UNU-MERIT
This study develops a model of growth and innovation in which accumulation dynamics of knowledge and R&D are explicitly considered. The model is based on a more general knowledge production framework than commonly used in Endogenous Growth Theory and R&D productivity literatures, reconciling as special cases disparate analytical frameworks and functional forms. The modeling approach reveals the structure of R&D elasticity estimation biases that can result from failure to take into account the accumulation dynamics of knowledge and R&D. These findings provide guideposts for empirical work on R&D productivity and innovation studies based on the knowledge production function framework. Finally, the model of knowledge dynamics highlights the possibility of long-run idea-driven growth without the razor-edge assumption of Romer (1990) and in the absence of growth in R&D employment stipulated by Jones (1995).
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Venue: Board Room, Keizer Karelplein 19, Maastricht
Date: 12 May 2015
Time: 14:00 - 15:00