General purpose technologies (GPTs) are drastic innovations, such as electrification, the transistor, and the Internet, that are characterized by the pervasiveness in use, innovational complementarities, and technological dynamism. The transitional and long-run dynamic effects of a GPT are analyzed within a quality-ladders model of scale-invariant Schumpeterian growth. The diffusion path of a G...

Is financial innovation necessary for sustaining economic growth? To address this question, we build a Schumpeterian model in which entrepreneurs earn profits by inventing better goods and profit-maximizing financiers arise to screen entrepreneurs. The model has two novel features. First, financiers engage in the costly but potentially profitable process of innovation: they can invent better me...

This paper presents a set of theories of localised resource-based growth and development that have helped analysts and policy makers to consider if and how alternative employment can be promoted in relation to the natural-resource-based industries that show a rapid decrease of employment in many regions. Marshall’s theory of industrial evolution and industrial districts has especially emphasise...

This study explores how agricultural technology affects the endogenous takeoff of an economy in Schumpeterian growth model. Due to subsistence requirement for consumption, improvement reallocates labor from agriculture industrial sector. Therefore, expands firm size sector, which determines innovation and triggers transition stagnation growth. Calibrating model data, we find that without reallo...

a r t i c l e i n f o The paper contributes to the literature relating to inequality and economic growth, in particular, we investigate the effects of wealth distribution on the kind of growth driven by innovation, i.e. Schumpeterian growth. Since two types of individuals are assumed, the poor and the rich, Gini-coefficient is treated in two variables, namely the relative wealth of the poor and...