scholarly journals Innovation, Public Policy and Growth: What the Data Say

2021 ◽  
pp. 9-22
Author(s):  
Ufuk Akcigit
Keyword(s):  
Economic Growth ◽  
Public Policy ◽  
Technological Progress ◽  
Innovation Policy ◽  
Firm Dynamics ◽  
Long Run ◽  
Shed Light

AbstractInnovation and technological progress are the key determinants of long-run economic growth and welfare. Therefore, an important question is, how can public policy encourage more innovation? In this chapter, I review some of the empirical findings from various recent studies on innovation and firm dynamics that can shed light on the design of innovation policy. The discussion in the chapter is divided into three categories: (i) firm studies, (ii) inventor studies, and (iii) idea (patent) studies.

How Does Innovation Affect Economic Growth? Evidence from G20 Countries

2021 ◽  
pp. 001946622110635
Author(s):  
Ajoy K Sarangi ◽  
Rudra P. Pradhan ◽  
Tamal Nath ◽  
Rana P. Maradana ◽  
Hiranmoy Roy
Keyword(s):  
Economic Growth ◽  
Causal Relationships ◽  
Jel Codes ◽  
The Real ◽  
Real Effects ◽  
Long Run ◽  
Short Run ◽  
Shed Light

We study the interactions between innovation and economic growth in G20 countries over 1961–2019. We establish whether there is a temporal causality between these two variables. Employing the autoregressive distributive lag framework, our results expose a grid of short-run and long-run causal relationships between innovation and growth, including long-run unidirectional causality from innovation to economic growth. Overall, our findings shed light on the real effects of innovation on economic growth. JEL Codes: O38, O31, O32

A NOTE ON THE IMPLICATIONS OF AUTOMATION FOR ECONOMIC GROWTH AND THE LABOR SHARE

2017 ◽  
Vol 23 (3) ◽  
pp. 1294-1301 ◽  
Author(s):  
Klaus Prettner
Keyword(s):  
United States ◽  
Economic Growth ◽  
Growth Rate ◽  
Population Growth ◽  
Capital Accumulation ◽  
Technological Progress ◽  
The United States ◽  
Economic Growth Rate ◽  
Labor Share ◽  
Long Run

We introduce automation into a standard model of capital accumulation and show that (i) there is the possibility of perpetual growth, even in the absence of technological progress; (ii) the long-run economic growth rate declines with population growth, which is consistent with the available empirical evidence; (iii) there is a unique share of savings diverted to automation that maximizes long-run growth; and (iv) automation explains around 14% of the observed decline of the labor share over the last decades in the United States.

scholarly journals Research of the synergetic Effects of the Impact of Innovative and Related Macroeconomic Factors on Economic Growth

2021 ◽  
Vol 25 (4) ◽  
pp. 98-109
Author(s):  
B. D. Matrizaev
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Technological Innovation ◽  
Positive Impact ◽  
Innovation Policy ◽  
Coordinated Development ◽  
Macroeconomic Factors ◽  
Long Run ◽  
Stable Growth ◽  
The Impact

This article examines the main mechanisms and tools for implementing innovation policy in countries with fastgrowing economies such as China and India. The study aims to explore the causal relationship between innovation, key macroeconomicvariables and economic growth.The author applies the entropy method and adapts the Graymodel to build a system of indices for assessing the coordination of the interaction of technological innovation, financial development and economic growth. The results show that the degree of integration of the financial system into innovation processes has a significant positive impact on the success of innovation, which is measured by patent activity. Our research proves that innovation indirectly affects economic growth through quality of life, infrastructure efficiency, employment, and rade openness. The findings of the research reveal that both economic growth and innovation tend to depend on a number of conjugate variables in the long run: capital, labor, etc. The author concludes that a comprehensive analysis of technological innovation, financial development and economic growth shows that the three-factor relationship has great potential for coordinated development, as a result of which, according to the calculated forecasts, economic growth in fast-growing economies will significantly accelerate its pace in the next five years. The subject of further research may be an analysis of whether the degree of conjugation of connectivity and coordination between the three systems will maintain stable growth at high values and whether they will be able to reach the stage of transformation.

scholarly journals The Second Split in Economic Science (About 2018 Nobel Memorial Prize in Economic Sciences)

2019 ◽  
Vol 13 (1) ◽  
pp. 77-84
Author(s):  
Y. P. Voronov
Keyword(s):  
Climate Change ◽  
Economic Growth ◽  
Technological Progress ◽  
Quantitative Model ◽  
Technological Innovations ◽  
Economic Science ◽  
Change Models ◽  
Macroeconomic Analysis ◽  
Long Run

In this article, I described the results of investigations achieved by two American economists William Nordhaus and Paul Romer. They have been awarded the 2018 Nobel Memorial Prize in Economic Sciences mainly for the introduction of feedbacks in economic and mathematical modelling. Nordhaus “for integrating climate change into long-run macroeconomic analysis” where quantitative model describes the global interplay between the economy and the climate and integrates theories and empirical results from physics, chemistry and economics. Romer “for integrating technological innovations into the long-run macroeconomic analysis” where he shows how knowledge can function as a driver of long-term economic growth.  I considered three blocks in the models of W. Nordhaus and P. Romer and the functions of each of them. Also, I discussed the assumptions that underlie their models. The author notes that climate change models are also being built in Russia, but there are no economic blocks in them, models of long-term economic growth with endogenous scientific and technological progress are formed in Russia also, but representatives of natural Sciences do not participate in them. Experience of the laureates shows that providing models of long-run economic development of the country and the world are necessary. The article also highlights P. Romer work on international Charter cities, the sources of world scientific and technological progress.

Tolerance, collaboration, and economic growth

2017 ◽  
pp. 33-49 ◽  
Author(s):  
V. Polterovich
Keyword(s):  
Economic Growth ◽  
Technological Progress ◽  
Political Correctness ◽  
Well Being ◽  
Social Forces ◽  
Political Pluralism ◽  
Fundamental Feature ◽  
Tolerance Level ◽  
The Past ◽  
Long Run

Institutional (in particular, political) pluralism is a fundamental feature of modern developed societies. Its cultural basis is the tolerance of citizens. The paper proposes to distinguish between legal, evaluative and interactive tolerance. This distinction makes it possible to explain the contradictory results obtained in econometric studies of tolerance and its links with the economic growth. Legal tolerance is the basis of competitive pluralism, and interactive one is the prerequisite for the formation of consensus pluralism, based on the collaboration of various social forces. Struggle for resources, intra- and intercountry inequality, “history wars” and prejudices prevent the strengthening of tolerance. Attention is drawn to the “paradox of political correctness”: dogmatic tolerance generates intolerant behavior. It is noted that interactive tolerance in developing countries is significantly correlated with technological progress and the level of well-being. The existence of this relationship, which is realized through collaboration mechanisms, gives the ground for supposition that, despite the contradictory dynamics of the tolerance level in the past 25 years, tolerance will be strengthening in the long run.

Economic growth: Nobel prize in economic sciences 2018 and the lessons for Russia

2019 ◽  
pp. 11-36 ◽  
Author(s):  
O. A. Zamulin ◽  
K. I. Sonin
Keyword(s):  
Economic Growth ◽  
Nobel Prize ◽  
Technological Progress ◽  
Growth Theory ◽  
Environmental Damage ◽  
Solow Model ◽  
Russian Economy ◽  
Intentional Actions ◽  
Long Run ◽  
Negative Effect

The article discusses the evolution of the theory of long-run economic growth and the contribution of the 2018 Nobel prize winners Paul Romer and William Nordhaus. First, it describes the exogenous growth theory of the 1950s and 1960s, such as the Solow model, the Ramsey model, and the overlapping generations model, in which growth is determined by exogenously given technological progress. Then the paper turns to the contribution of the Nobel laureates, who were the first ones to develop the theory of endogenous growth. In the case of the Romer model, technological progress is the result of intentional actions of firms, which introduce new products and thereby raise the overall productivity. In case of the Nordhaus model, production causes environmental damage, which then stifles further growth. In both cases production causes externalities, which have either positive or negative effect on growth. Then, the article considers further developments in the theory of economic growth, such as the Schumpeterian theory , unified growth theory, and institutional theory. The paper concludes with some practical implications about policies needed to reignite the growth of the Russian economy.

scholarly journals The Remittances-Output Nexus: Empirical Evidence from Egypt

2014 ◽  
Vol 2014 ◽  
pp. 1-8 ◽  
Author(s):  
Mesbah Fathy Sharaf
Keyword(s):  
Economic Growth ◽  
Causal Link ◽  
Correction Model ◽  
Vector Error Correction ◽  
Equilibrium Dynamics ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Vector Error ◽  
Long Run ◽  
Shed Light

This paper examines the long-run causal link between remittances and output in Egypt for the period 1977–2012. The long-run causal link is examined using the autoregressive distributed lag (ARDL) bounds test for cointegration, along with a vector error-correction model to estimate the short- and long-run parameters of equilibrium dynamics. Results show that remittances and GDP are cointegrated, with a statistically significant, positive causality running from remittances to output, while output is found not to be a long-run forcing factor of remittances in Egypt. The findings of this paper shed light on the importance of remittances for promoting economic growth in Egypt. Governmental policies that attract more remittance inflows, along with their efficient use, could promote economic growth in Egypt.

scholarly journals Children’s intergroup prosocial behavior: The role of group stereotypes

2022 ◽  
Author(s):  
Jellie Sierksma
Keyword(s):  
Prosocial Behavior ◽  
Group Membership ◽  
Young Age ◽  
Long Run ◽  
Growing Body ◽  
Group Members ◽  
Sharing Behavior ◽  
Shed Light

Children are prosocial from a young age onward but their prosocial actions are not necessarily egalitarian – especially with regard to others’ group membership. From around four years of age children tend to help and share more with in-group members compared to out-group members. However, a growing body of findings also suggest that sometimes children act more prosocially toward out-group members. How can we reconcile such seemingly contradicting behaviors? In this chapter, I describe how the salience of group stereotypes might shed light on these inconsistent findings. Specifically, different helping contexts can activate different group stereotypes. These different stereotypes could lead children to sometimes act more prosocially toward in-group peers, but sometimes show out-group bias in their helping or sharing behavior. For example, contexts that involve reciprocity could increase salience of a stereotype that out-groups are less trustworthy and thus children might be less inclined to share their resources with the out-group (i.e., in-group bias). Whereas an academic helping context might make a stereotype salient that entails out-groups are less competent and thus needing more help (i.e., out-group bias). Taking into account group stereotypes in children’s prosocial behavior will provide us with a deeper understanding of the underlying motivations that lead to selective prosociality in children. In the long run, such insights can contribute to combating discrimination and prejudice early in life.

scholarly journals Role of human capital in the promotion of technological progress, economic growth and development in Africa: A case study of Kenya

2018 ◽  
Vol 6 (1) ◽  
Author(s):  
Jimmy Alani
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Growth And Development ◽  
Capital Accumulation ◽  
Technological Progress ◽  
Positive Influence ◽  
Economic Growth And Development ◽  
Long Run ◽  
Human Capital Index

Background: This article evaluates the role of human capital in the promotion of technological progress, economic growth and development in Africa by focusing on the case of Kenya.Objectives: The overall objective of this article was to evaluate the effects of human capital on technological progress, economic growth and development in Kenya over the period between 1971 and 2014.Method: In this article, human capital was measured by human capital index defined as the ratio of current level of human capital in the national economy to the level of human capital 2 years ago. In particular, human capital in the broad sense was estimated by computing the ratio between 2 years of the hypotenuse of capital and labour vectors, and this measure outperformed all the other measures of human capital by yielding very good regression results by way of the generalised least squares technique.Results: Based on the econometric and statistical analyses, human capital in Kenya was found to have had a positive influence on economic growth in the long run. Human capital was also found to have had a positive influence on labour in the long run.Conclusion: Both human capital formation and technological progress should be given priority in the promotion of economic growth and development in Kenya rather than merely increasing the productivity of either capital or labour. Capital accumulation and labour generation should also be encouraged because increase in the two variables always under normal circumstances results in economic growth and development.

scholarly journals A Patent System for Both Diffusion and Exclusion

1991 ◽  
Vol 5 (1) ◽  
pp. 43-60 ◽  
Author(s):  
Janusz A Ordover
Keyword(s):  
Economic Growth ◽  
Technological Progress ◽  
Patent Protection ◽  
Analytical Framework ◽  
Patent Law ◽  
Dynamic Efficiency ◽  
Long Run ◽  
Public Policy Analysis ◽  
Patent Laws ◽  
Social Concerns

Public policy analysis of optimal patent regimes is often framed as a tradeoff between static and dynamic efficiency. In this analytical framework, weak patent protection and strict antitrust policy are taken to be directed toward static concerns, while protection of intellectual property through strong patent laws is taken as a reflection of broader social concerns for long-run growth and technological progress. This characterization has some truth, but the magnitude of the conflict between static and dynamic efficiency, can easily be exaggerated. In this article, I want to argue that weak patent protection need not be inimical to economic growth and, conversely, that strong patent protection need not be an enemy of diffusion. Appropriately structured patent law and antitrust rules can together ensure incentives for R&D and also induce cooperation among firms in diffusing R&D results through licensing and other means. At the same time, cooperation among firms at the R&D stage can counterbalance weak patent protection by internalizing spillovers from ongoing R&D programs, and such cooperation may also produce additional spillovers from the existing knowledge.

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