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Innovation, diffusion and cumulative causation: changes in the Spanish growth regime, 1960-2001

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  • Castellacci, Fulvio

Abstract

This article presents a model of macroeconomic growth that combines in a single formalization two complementary views on innovation and economic growth, the technology-gap approach and the Kaldorian theory of cumulative causation. The model suggests that what matters for economic growth in the long run is the existence of a good match between the patterns of technological change, income distribution and demand growth. The model is estimated for the Spanish economy during the period 1960-2001, and the econometric results show that important changes have happened in its growth regime over time. Since the 1980s, innovation and diffusion of new technologies provide with a greater stimulus to productivity growth, but the technology push on the supply-side is not sustained by the prevailing patterns of income distribution and demand growth.

Suggested Citation

  • Castellacci, Fulvio, 2005. "Innovation, diffusion and cumulative causation: changes in the Spanish growth regime, 1960-2001," MPRA Paper 27605, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:27605
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    Cited by:

    1. Francesco Crespi & Mario Pianta, 2008. "Demand and innovation in productivity growth," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(6), pages 655-672.
    2. Millemaci, Emanuele & Ofria, Ferdinando, 2016. "Supply and demand-side determinants of productivity growth in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 138-146.
    3. Cárdenas, Luis & Fernández, Rafael, 2020. "Revisiting francoist developmentalism: The influence of wages in the Spanish growth model," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 260-268.

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    More about this item

    Keywords

    Innovation; diffusion; cumulative causation; economic growth;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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