e-BOOK
Macroeconomic Modelling of R&D and Innovation Policies
The key role of innovation as a driver of economic development was first described by Schumpeter (1934). In current times, there is widespread consensus among academic economists and policymakers, that research and development (R&D) activities play a decisive role in fostering growth
in productivity and, hence, in the standards of living, as innovation intensive industries create highly skilled jobs, exhibit higher wages, are more productive, are often export-led and enhance competitiveness during the thick and thin of business cycles.
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