Innovation is the main engine of growth in an increasing number of economies.
Innovation economies are, according to the Quadruple Helix (QH) Innovation
Theory, sustained by four pilars – Firms, Academia, Government and Consumers –,
all operating in a systemic, interactive environment. We provide a model that gives
analytical body to the QH theory and links formally innovation to economic growth.
We aim to emphasise the equally important roles of the four helices sustaining an
innovation economy and its long run growth. In particular, given the downwards
pressure on Government expenditures, we analyse the effects of an increase in public
expenditures on economic growth, which we find positive in the short, medium and
long-run.COMPETE; QREN; FEDER; Fundação para a Ciência e a Tecnologia (FCT
