Innovation and adoption as main mechanisms for economic growth in a knowledge-based economy

Abstract

Being considered the importance of technological change gets more attention as the knowledge-based economy evolved, understandings on the mechanisms for long-run economic performance seen necessary to have better insight for the evolution of current world economy. As an attempt for this, this paper reviews some selected studies on the model of endogenous innovation and adoption, the two mechanisms regarded as most crucial for economic growth in the knowledge-based economy. We find that economic factors such as market structure, size or population of country, preference and so on are more crucial for economic performance in the model of innovation, but in the model of adoption less or non-economic factor such as national politics and institution are more crucial.