The endogenous innovation research program is one of the most important theoretical agendas in modern growth theory. Progress, however, has been slowed due to an apparent empirical anomaly. In their simplest and most appealing forms the models suggest a scale effect that seems inconsistent with...

This article contributes to the growth literature by developing a formal growth model that provides the basis for studying institutions and technological innovation and examining how human capital and institutional constraints affect the transitional and steady state growth rates of output. The...