We analyze the nature of research and development (R&D) that leads to Schumpeterian economic growth in a region that is creative in the sense of Richard Florida. The engine of economic growth in our creative region is process innovations that lead to quality improvements in the machines that are...

Abstract: Drawing on McCraw's (2007) biography, this paper assesses the character of Joseph Schumpeter. After a biographical summary of Schumpeter's life and career as an economist, the paper considers a thread of deliberate posturing and pretense in Schumpeter's grandiose ambitions and claims...

What is the social value of innovations in Schumpeterian growth models? This issue is tackled by introducing the concept of Lindahl equilibrium in a standard endogenous growth model with vertical innovations which is extended by explicitly considering knowledge diffusion on a Salop (1979)...