The co-evolution of innovation, demand and growth

摘要: In order to explain long-run economic development, we analyse in this paper the interplay between supply-side and demand-side processes. On supply side, three different innovation processes are observed interact: (i) growing productive efficiency, (ii) emergence of new sectors (iii) increasing quality differentiation existing products. demand meaning disposable income varying preference systems. The analysis is undertaken with help a numerical model growth by industries. Our results show that time path development which observe could not have been generated taking into account supply-side-based view on innovations alone. Without making reference formation an adequate demand, cannot be explained. need combined because each one individually would suffice generate development. However, only for...