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R&D and Economic Growth: A Model to Explain Why Increased Research Does Not Lead to Increased Growth

Tillander, Johannes LU (2018) NEKH02 20181
Department of Economics
Abstract
In recent decades, industrialized economies have significantly increased their R&D efforts while economic growth rates have been relatively stable. This goes against the conclusions of most previous economic models of endogenous growth. In this paper, an endogenous growth model has been created in which technology is treated as an income-compensated factor of production. The purpose is to create a theoretical model in which economies must increase their research intensity in order to maintain economic growth rates. The model is able to predict the growth rate and level of GDP per capita to the correct order of magnitude, although not with a remarkable degree of accuracy. However, the model seems to necessitate continuous increases in... (More)
In recent decades, industrialized economies have significantly increased their R&D efforts while economic growth rates have been relatively stable. This goes against the conclusions of most previous economic models of endogenous growth. In this paper, an endogenous growth model has been created in which technology is treated as an income-compensated factor of production. The purpose is to create a theoretical model in which economies must increase their research intensity in order to maintain economic growth rates. The model is able to predict the growth rate and level of GDP per capita to the correct order of magnitude, although not with a remarkable degree of accuracy. However, the model seems to necessitate continuous increases in research intensity in order to maintain the economic growth rate. (Less)
Please use this url to cite or link to this publication:
author
Tillander, Johannes LU
supervisor
organization
course
NEKH02 20181
year
type
M2 - Bachelor Degree
subject
language
English
id
8957703
date added to LUP
2018-09-24 15:08:53
date last changed
2018-09-24 15:08:53
@misc{8957703,
  abstract     = {In recent decades, industrialized economies have significantly increased their R&D efforts while economic growth rates have been relatively stable. This goes against the conclusions of most previous economic models of endogenous growth. In this paper, an endogenous growth model has been created in which technology is treated as an income-compensated factor of production. The purpose is to create a theoretical model in which economies must increase their research intensity in order to maintain economic growth rates. The model is able to predict the growth rate and level of GDP per capita to the correct order of magnitude, although not with a remarkable degree of accuracy. However, the model seems to necessitate continuous increases in research intensity in order to maintain the economic growth rate.},
  author       = {Tillander, Johannes},
  language     = {eng},
  note         = {Student Paper},
  title        = {R&D and Economic Growth: A Model to Explain Why Increased Research Does Not Lead to Increased Growth},
  year         = {2018},
}