Innovation, diffusion and cumulative causation: changes in the Spanish growth regime, 1960-2001

Castellacci, Fulvio (2005): Innovation, diffusion and cumulative causation: changes in the Spanish growth regime, 1960-2001.

Abstract

This article presents a model of macroeconomic growth that combines in a single formalization two complementary views on innovation and economic growth, the technology-gap approach and the Kaldorian theory of cumulative causation. The model suggests that what matters for economic growth in the long run is the existence of a good match between the patterns of technological change, income distribution and demand growth. The model is estimated for the Spanish economy during the period 1960-2001, and the econometric results show that important changes have happened in its growth regime over time. Since the 1980s, innovation and diffusion of new technologies provide with a greater stimulus to productivity growth, but the technology push on the supply-side is not sustained by the prevailing patterns of income distribution and demand growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Innovation; diffusion; cumulative causation; economic growth
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development

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