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.
Test your knowledge with 4 questions on Endogenous Growth and Innovation.
1. What distinguishes endogenous growth from growth attributed to an external factor?
2. How do endogenous growth theorists explain the continuation of economic growth?
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