<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The aim of the research in this paper is to analyse the issue of the treatment of the category of technological changes within the main aspects of economic growth theory. The analysis of the key positions of neoclassical theory (Solow), endogenous approach (Romer), and evolutionary growth theory (Freeman) advocates has pointed to the conclusion that these approaches agree on the fact that the category of technological changes is a key generator of economic growth. Neoclassicists were the first to explicitly analyse the category of technological changes in growth theory. They exerted a strong influence on a large number of governments to allocate significant funds for scientific and research development, to stimulate the creation and diffusion of innovation. Supporters of endogenous theory also see the category of technological changes as a key driver of economic growth. Unlike neoclassicists, they emphasise the importance of externalities, in the form of technological spillover and research and development activities, for the creation and diffusion of innovation. Finally, evolutionary and institutional economists explore the category of technological changes inseparably from the economic and social environment in which they are created and diffused. Recommendations of this research can be of particular use to economic growth and development policy makers in the knowledge economy, whose basic and substantial feature is the so-called fourth industrial revolution</p></abstract>

The aim of the research in this paper is to analyse the issue of the treatment of the category of technological changes within the main aspects of economic growth theory. The analysis of the key positions of neoclassical theory (Solow), endogenous approach (Romer), and evolutionary growth theory (Freeman) advocates has pointed to the conclusion that these approaches agree on the fact that the category of technological changes is a key generator of economic growth. Neoclassicists were the first to explicitly analyse the category of technological changes in growth theory. They exerted a strong influence on a large number of governments to allocate significant funds for scientific and research development, to stimulate the creation and diffusion of innovation. Supporters of endogenous theory also see the category of technological changes as a key driver of economic growth. Unlike neoclassicists, they emphasise the importance of externalities, in the form of technological spillover and research and development activities, for the creation and diffusion of innovation. Finally, evolutionary and institutional economists explore the category of technological changes inseparably from the economic and social environment in which they are created and diffused. Recommendations of this research can be of particular use to economic growth and development policy makers in the knowledge economy, whose basic and substantial feature is the so-called fourth industrial revolution

Technological Changes in Economic Growth Theory: Neoclassical, Endogenous, and Evolutionary-Institutional Approach

Business School of Applied Studies in Valjevo

University of Nis, Faculty of Economics, Republic of Serbia

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The aim of the research in this paper is to analyse the issue of the treatment of the category of technological changes within the main aspects of economic...

Technological Changes in Economic Growth Theory: Neoclassical, Endogenous, and Evolutionary-Institutional Approach

Published Online: Jul 26, 2016

Page range: 177 - 194

Received: Mar 28, 2016

Accepted: May 18, 2016

DOI: https://doi.org/10.1515/ethemes-2016-0009

Keywords
technological changes, economic growth, economic growth theory, neoclassical theory, endogenous growth theory, evolutionary growth theory

© 2016

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Technological Changes in Economic Growth Theory: Neoclassical, Endogenous, and Evolutionary-Institutional Approach

Published Online: Jul 26, 2016

Page range: 177 - 194

Received: Mar 28, 2016

Accepted: May 18, 2016

DOI: https://doi.org/10.1515/ethemes-2016-0009

Keywordstechnological changes, economic growth, economic growth theory, neoclassical theory, endogenous growth theory, evolutionary growth theory

© 2016

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
technological changes, economic growth, economic growth theory, neoclassical theory, endogenous growth theory, evolutionary growth theory