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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.
Gene M. Grossman is Professor of Economics and International Affairs at Princeton University. Elhanan Helpman is Archie Sherman Professor of International Economic Relations at Tel Aviv University.
Gene M. Grossman is Professor of Economics and International Affairs at Princeton University. Elhanan Helpman is Archie Sherman Professor of International Economic Relations at Tel Aviv University.
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