SPECULATIVE PROFITS, INNOVATION, AND GROWTH

Innovation , profits and growth : Schumpeter and

Profits and growth in the USA

Was America’s “new era” of faster productivity and profits growth a figment of fevered imaginations or a genuine advance? Our detailed examination gives grounds for cautious optimism about the longer term. Trend productivity growth could stay above 2% a year, as long as labour and product markets remain vigorously competitive. If so, trend company earnings could grow close to 3% a year in const...

Dynamics of Innovation and Governance Of Economic Growth

Innovation ability plays an important role in economic growth not only in under- developed countries, but also in developed countries, especially when markets are in recession. In this paper, we analyzed changes in major developments in the context of innovation capacity and the causality relation between innovation and its sources through an empirical study based on the automotive subcontracto...

Innovation, reallocation and growth

We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A key feature is the selection between highand low-type firms, which differ in terms of their innovative capacity. We estimate the parameters of the model using detailed US Census micro data on firm-level output, R&D and patenting. The model provides a good fit to the dynamics of...

Innovation and Economic Growth

This paper surveys the empirical evidence on the link between innovation and economic growth. It considers a number of different measures of innovation, such as R&D spending, patenting, and innovation counts, as well as the pervasive effect of technological spillovers between firms, industries, and countries. There are three main conclusions. The first is that innovation makes a significant con...