Innovation and growth in the global economy

@inproceedings{Grossman1991InnovationAG,
  title={Innovation and growth in the global economy},
  author={Gene m. Grossman and Elhanan Helpman},
  year={1991}
}
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. 
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