期刊名称：Discussion Papers in Economics / Department of Economics, University of Surrey
出版年度：2016
出版社：University of Surrey
摘要：We propose a demand-driven growth theory where process innovations and product inno-vations ful l sequential roles along the growth path. Process innovations must initially setthe economy on a positive growth path. However, process innovations alone cannot fuelgrowth forever, as their bene ts display an inherent tendency to wane. Product innova-tions are therefore also needed for the economy to keep growing in the long run. When theeconomy fails to switch from a growth regime steered by process innovation to one drivenby product innovation, R&D e¤ort and growth will eventually come to a halt. However,when the switch to a product innovation growth regime does take place, a virtuous circlegets ignited. This happens because product innovation e¤ort not only keeps growth alivewhen incentives to undertake process innovation diminish, but it also regenerates pro tprospects from further process innovation e¤ort.
关键词：Endogeneous Growth; Process and Product Innovation; Nonhomothetic;Preferences; Quality Ladders.
