Download or read book Innovation and Growth in the Global Economy written by Gene M. Grossman and published by MIT Press. This book was released on 1993-01-29 with total page 380 pages. Available in PDF, EPUB and Kindle. Book excerpt: Grossman and Helpman develop a unique approach in which innovation is viewed as a deliberate outgrowth of investments in industrial research by forward-looking, profit-seeking agents. Traditional growth theory emphasizes the incentives for capital accumulation rather than technological progress. Innovation is treated as an exogenous process or a by-product of investment in machinery and equipment. Grossman and Helpman develop a unique approach in which innovation is viewed as a deliberate outgrowth of investments in industrial research by forward-looking, profit-seeking agents.