This paper extends the standard neoclassical model by considering a technology sector through which an economy with limited human capital attempts to catch up with a given "locomotive" pushing exogenously technical progress. In periods of technological stagnation, economies close enough to the...

The locomotive theory is likely to come up again for discussion at the next summit of the major industrial nations in Bonn in July. What are the basic ideas behind this theory? And what are its chances of success if adopted as an economic policy?