Product variety, product quality, and evidence of Schumpeterian endogenous growth: a note

Abstract

Using US manufacturing industry data, this paper re-examines empirical evidence of first- and second-generation Schumpeterian models of endogenous growth focusing on innovation (patent) quality. It shows that semi-endogenous growth models behave better than the other strands of Schumpeterian theory especially in the knowledge-intensive section of the economy.fully endogenous growth theory, semi-endogenous growth theory, innovation quality, US manufacturing, high-tech industries.