Research on the Impact of Innovation on Economic Development: Theoretical Models

Abstract

The forerunner of modern research was the theoretical work of the 1950-60s, in which it was proposed to measure innovation with the help of indirect indicators, such as the number of patents issued to an organization or its employees; significant capital and operating costs of companies in research and development, design, engineering, manufacturing and marketing, etc. Models of exogenous growth, being part of the general theory of economic growth, originate in the early works of R. Solow [Solow, 1957]. Since consistency was the most important characteristic of the classical Solow model, two main drivers of economic growth stand out in it: an increase in labor costs and the concept of capital. The concept of capital is based on knowledge, which is positioned as a new factor in economic growth. As an indicator integrating "intangible assets" necessary for economic, financial and innovative activities. A model of the logical and meaningful interconnection of long-term economic growth and an increase in the quality of life determined by innovation activity was proposed by R. Solow [Solow, 1957]. Systematic work on the development of endogenous growth models was started in the works of Uzawa [Uzawa, 1965], the Romer model [Romer, 1986], the Uzawa-Lucas model [Lucas, 1988]. A model with human capital — for example, the Mankyu, Romer and Weil model, the Romer model, and the Lucas model — show the impact of exchange of ideas on economic growth. By modifying the neoclassical model of economic growth (by introducing labor mobility), an analysis is made of the impact of migration on economic growth. The paper shows that the effect of migration on the convergence of countries in terms of GDP occurs due to the spread of technology between countries (exchange of ideas).