Endogenous Growth and Innovation

Study sheet excerpt

Course Outline

  1. Endogenous Growth Model
  2. Types of Innovation
  3. Technical Progress and Productivity

1. Endogenous Growth Model

Key Concepts & Definitions

  • Endogenous growth : a theoretical model of self-sustaining economic growth

Essential Points

  • According to endogenous growth theorists, economic agents accumulate different forms of capital through growth, generating positive externalities that allow growth to continue indefinitely.

Memory Hook

Capital accumulation → positive externalities → self-sustaining growth

2. Types of Innovation

Key Concepts & Definitions

  • Innovation : the industrial or commercial applications of an invention

★ Must-know

📌 Product innovation creates or improves products, whereas process innovation creates or improves production techniques.

Further detail

  • The examples given are:
    • smartphones
    • facial recognition for mobile phones
    • assembly-line work
    • computer-assisted production

Memory Hook

Product innovation changes what is produced; process innovation changes how it is produced

3. Technical Progress and Productivity

Key Concepts & Definitions

  • Technical progress : the set of innovations that transform products and productive activities

Essential Points

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Quiz preview

1. What distinguishes endogenous growth from growth attributed to an external factor?

2. How do endogenous growth theorists explain the continuation of economic growth?

3. When does an invention become an innovation?

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Flashcards preview

What is endogenous growth in economic theory?

A theoretical model of self-sustaining economic growth.

How do economic agents sustain growth in endogenous growth theory?

By accumulating capital that generates positive externalities allowing indefinite growth.

What does innovation consist of?

Industrial or commercial applications of an invention.

What distinguishes product innovation from process innovation?

Product innovation improves products; process innovation improves production techniques.

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Frequently asked questions

What does the study sheet on Endogenous Growth and Innovation cover?

The study sheet covers the essential concepts of Endogenous Growth and Innovation. It is organized by topic to facilitate learning and memorization, with key definitions, explanations and summaries.

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How many questions are in the Endogenous Growth and Innovation quiz?

The quiz contains 4 multiple-choice questions with detailed corrections and explanations for each answer. Ideal for testing your knowledge and identifying gaps.

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How to study Endogenous Growth and Innovation with flashcards?

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