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Counting innovations: Schumpeterian growth in discrete time

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  • Cozzi, Guido
  • Galli, Silvia

Abstract

Schumpeterian growth theory based on creative destruction was originally designed for continuous time innovation and growth models. However, its recently expanding use in DSGE modelling calls for an easily useable discrete time recast. We here show how to construct a discrete time version of creative destruction fully equivalent to its continuous time counterpart.

Suggested Citation

  • Cozzi, Guido & Galli, Silvia, 2020. "Counting innovations: Schumpeterian growth in discrete time," Economics Letters, Elsevier, vol. 189(C).
    • Handle: RePEc:eee:ecolet:v:189:y:2020:i:c:s0165176520300410
    DOI: 10.1016/j.econlet.2020.109014
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    Cited by:

    1. Jackson, Emerson Abraham, 2020. "Fostering Sustainable Innovation through Creative Destruction Theory," MPRA Paper 102174, University Library of Munich, Germany, revised 21 Mar 2020.

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    More about this item

    Keywords

    R&D and growth; Creative destruction; Discrete time; DSGE;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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