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A Nonscale Growth Model with R&D and Human Capital Accumulation

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Abstract

This paper presents an endogenous growth model that includes research and development and human capital accumulation. The model’s specification builds on the R&D-based structure of Romer’s [1990] model and introduces two functions: (1) A specification for the production of new designs that assumes no externalities and no inventions before time zero; and (2) A specification for the accumulation of human capital technically similar to that in Lucas [1988]. The model displays two main results. The first is that it eliminates the scale-effects prediction which is common to most R&D-based growth models, but which is not empirically supported. Secondly, the model offers a new prediction that growth depends positively on the ratio of final-good workers to researchers. Thus the model provides a theoretical explanation as to why developed countries have had rising numbers of researchers but not rising growth rates in the twentieth century.

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  • Maria João Ribeiro Thompson, 2003. "A Nonscale Growth Model with R&D and Human Capital Accumulation," NIPE Working Papers 5/2003, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:5/2003
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    18. Samuel S. Kortum, 1997. "Research, Patenting, and Technological Change," Econometrica, Econometric Society, vol. 65(6), pages 1389-1420, November.
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    Cited by:

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    2. Tomas Havranek & Anna Sokolova, 2016. "Do Consumers Really Follow a Rule of Thumb? Three Thousand Estimates from 130 Studies Say "Probably Not"," Working Papers 2016/08, Czech National Bank.
    3. Dina Mandour, 2007. "Investigating The Impact Of Health and Enviromental Standards on Exports: The Case Of Egyptian Agro-Food Exports To The EU," Working Papers 707, Economic Research Forum, revised 01 Jan 2007.

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    More about this item

    Keywords

    endogenous growth; research and development; human capital accumulation; scale-effects prediction; final-good workers to researchers ratio.;
    All these keywords.

    JEL classification:

    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium

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