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A neo-Schumpeterian Approach to Why Growth Rates Differ

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  • Fulvio Castellacci

Abstract

The paper applies the neo-Schumpeterian long wave theory to the international dimension, with the purpose of studying growth rates differences across countries. It presents an aggregate growth model based on the competition between two technological paradigms, old and new, whose productivity trends follow a logistic path. The analytical properties of the model are studied through the use of simulation techniques, and they are then empirically investigated for the case of 21 oecd economies in the period 1890-1990. The econometric results indicate that the process of catching up, forging ahead and falling behind is the complex outcome of the adaptation of each country to the emerging technological paradigm. Countries differ in their timing of entry into the new long wave (dependent on their technological congruence), and in the speed at which the new paradigm diffuses and becomes dominant (dependent on their social capability, and on their facility for structural change). The earlier the entry and the faster the diffusion, the better will be the economic performance of the country relative to the others over the long wave growth process.

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  • Fulvio Castellacci, 2004. "A neo-Schumpeterian Approach to Why Growth Rates Differ," Revue économique, Presses de Sciences-Po, vol. 55(6), pages 1145-1169.
    • Handle: RePEc:cai:recosp:reco_556_1145
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    2. Giorgia Barboni & Tania Treibich, 2010. "On the Latin American Growth Paradox: A Hindsight into the Golden Age," LEM Papers Series 2010/21, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Castellacci, Fulvio, 2018. "Co-evolutionary growth: A system dynamics model," Economic Modelling, Elsevier, vol. 70(C), pages 272-287.
    4. Castellacci, Fulvio, 2006. "Innovation, diffusion and catching up in the fifth long wave," MPRA Paper 27521, University Library of Munich, Germany.
    5. Alvina Sabah Idrees & Saima Sarwar, 2023. "Spatial convergence clubs and innovation persistence: a country-group comparison of international spatial spillover of innovation capabilities," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(5), pages 4121-4152, October.
    6. Monika Kondratiuk-Nierodziñska, 2016. "New Knowledge Generation Capabilities And Economic Performance Of Polish Regions," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(3), pages 451-471, September.
    7. Karol Sledzik, 2013. "Knowledge Based Economy In A Neo–Schumpeterian Point Of View," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 8(4), pages 67-77, December.
    8. Castellacci, Fulvio & Natera, Jose Miguel, 2011. "A new panel dataset for cross-country analyses of national systems, growth and development (CANA)," MPRA Paper 28376, University Library of Munich, Germany.
    9. Castellacci, Fulvio, 2008. "Innovation and the competitiveness of industries: comparing the mainstream and the evolutionary approaches," MPRA Paper 27523, University Library of Munich, Germany.

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