We analyze recent contributions to growth theory based on the model of expanding variety of Romer [Romer, P. (1990). “Endogenous technological change”. Journal of Political Economy 98, 71–102]. In the first part, we present different versions of the benchmark linear model with imperfect...

In this chapter we argue that the endogenous growth model with quality-improving innovations provides a framework for analyzing the determinants of long-run growth and convergence that is versatile, simple and empirically useful. Versatile, as the same framework can be used to analyze how growth...

This Handbook chapter surveys the extensive body of research on the economics of the pharmaceutical industry (with peripheral attention paid also to regulated medical devices). Pharmaceuticals is one of the world's most research-intensive industries, generating a continuing steam of new products...

A principal economic rationale for government technology policy is the market failure explanation framed by Arrow and Nelson. Unfortunately, this rationale provides little specific guidance in areas where it is not possible or desirable to remedy market failures in the generation or distribution...

We review the literature on national innovation systems. We first focus on the emergence of the concept of innovation systems, reviewing its historical origins and three main flavors (associated to three “founding fathers” of the concept). After this, we discuss how the notion of innovation...

This chapter summarizes the basic characteristics of patent data as an innovation indicator and reviews some of the recent research using patent data, focusing on major developments since Griliches in 1990 [Griliches, Z. (1990). “Patent statistics as economic indicators: A survey”. Journal...

Innovation in agriculture differs from innovation elsewhere in the economy in several important ways. In this chapter we highlight differences arising from (a) the atomistic nature of agricultural production, (b) the spatial specificity of agricultural technologies and the implications for...

The geography of innovation describes the importance of proximity and location to innovative activity. As part of what has been termed the new economic geography, this area of research is less than 20 years old, and is now developed sufficiently so that the discussion can be organized around...

Universities’ centrality within the public research systems has been increasing over time, as it has their interactions with industry. Such interaction poses two dilemmas. One concerns individual scientists and the potential trade-off between basic research activities and those activities...

This chapter surveys the history of modern economic growth and suggests a number of mechanisms that drove the unprecedented technological thrust that account for the discontinuities of economic modernity. The Industrial Revolution and the subsequent developments did not just raise the level of...