We provide an outline for viewing the middle-income trap through the lens of the Schumpeterian growth paradigm, which places the notion of creative destruction at the center of economic growth. Economic growth and development come from the interplay between changes in economic structure and...

The theory of endogenous technical change has deeply contributed to our understanding of the fundamental sources of economic growth and development. In this chapter we survey important contributions in the field by focussing on the basic structure of endogenous growth models with horizontal as...

The theory of endogenous technical change has deeply contributed to our understanding of the fundamental sources of economic growth and development. In this chapter we survey important contributions in the field by focussing on the basic structure of endogenous growth models with horizontal as...

Economic development, which refers to the process of progressive transformation of an economy, is a multifaceted term without a universal definition. This article presents the constitutive elements of economic development, such as growth, distribution, and innovation. Economic development has...

R&D-based growth theory suggests that a larger population size raises either the long-run rate of economic growth ("strong scale effect") or the level of per capita income ("weak scale effect"), with far-reaching policy implications. However, for modern times there is little empirical support...

The aim of this paper is to investigate the nexus between demand patterns and innovation as it stems from research efforts and the extent of specialization. In the proposed model an innovation race conducted by entrants investing in research and development against established incumbents raises...

The current Chinese development model is nearing its limits. The World Bank has cautioned that China could find itself in a “middle-income trap”. China recognizes that it must dramatically increase its capacity for innovation to avoid this trap. This chapter provides an introduction to the...

This paper develops a new latent index of human capital identified as valuable skills for seventy countries for the period 1970-2003. The index is compared to existing measures of human capital in assessing the Benhabib and Spiegel (2005) model of logistic technology diffusion. The study...

Based on the main insights of Schumpeterian growth theory, this paper investigates which R&D-based mechanism is better suited for explaining the pattern of world’s productivity growth. Using post-WWII data for a global sample of 115 countries, we estimate the relationship between productivity...

The aim of this paper is to investigate the nexus between demand patterns and innovation as it stems from research efforts and the extent of specialization. In the proposed model an innovation race conducted by entrants investing in research and development against established incumbents raises...