An advanced economy relies on innovation activity for its further technology improvement. On the other hand a backward … economy depends on both imitation from the world technology frontier and innovation activities - innovation being more skilled … innovation-only regime to an imitation-innovation regime. I show that dependence on imitation activities rises and as a …

knowledge. Three long-term outcomes emerge. First, a "Secularization" or "Western-European" regime with declining religiosity …, unimpeded science, a passive Church and high levels of taxes and transfers. Second, a "Theocratic" regime with knowledge …

a higher level of education and R&D. The relationship between the acquisition of knowledge and institutional education … innovation, enterprise spirit and management capacity. Given that higher education institutions, in general, and universities, in … particular, are obviously crucial in the process of knowledge increase, it becomes important to analyse how can these …

, instead of the assumption of markets imperfections, by introducing a methodological innovation which connects the presence of …