SEMI-ENDOGENOUS VERSUS SCHUMPETERIAN GROWTH MODELS: TESTING THE KNOWLEDGE PRODUCTION FUNCTION USING INTERNATIONAL DATA

Abstract

Using various indicators of innovative activity and product variety in the OECD countries over the past century, this paper tests whether first- and second-generation models of economic growth are consistent with the data over time and across countries. The estimation results give evidence in favour of Schumpeterian models while the semi-endogenous growth theories are not consistent with the data.Schumpeterian growth theory, semi-endogenous growth theory