JOURNAL OF APPLIED BUSINESS AND ECONOMICS
R&D, Learning by Doing and Economic Growth
Author(s): Andrianasy A. Djistera
Citation: Andrianasy A. Djistera, (2020) "R&D, Learning by Doing and Economic Growth," Journal of Applied Business and Economics, Vol. 22, Iss.5, pp. 49-58
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper examines the relation between technical progress and economic growth. We build a growth model where the technological change depends on investment in research and development. Growth is determined by the imitation in the first stage of development, then innovation takes place. Assimilation and adaptation of technology produced in more advanced country play a crucial role in technological catch-up, but this imitation requires a precondition, an investment in human capital. The later remains a crucial factor of growth after the catch-up. Government can favour the economic growth facilitating and stimulating the technological change.