This North-South model of Schumpeterian endogenous growth combines a market, productivity and knowledge effect. A set of various convergent and divergent growth paths is derived that is much richer than in the literature so far. South-North convergence based on North-South technology diffusion...

We present a discrete-time version of an otherwise standard Schumpeterian growth model. Discrete time exhibits two important differences from continuous time. First, the probability of successful innovation cannot be homogeneous of degree one in inputs. A natural R&D analogue to constant returns...

We develop a Schumpeterian growth model with private IPR (Intellectual Property Rights) enforcement and investigate the implications for IPR and R&D policies. In our setting, successful innovators undertake costly activities to enforce their patents and protect their monopoly rents. These Rent...

This paper analyzes the relationship between unemployment and growth, applying the seminal growth model of Aghion/Howitt (1992). We distinguish low skilled and high skilled labor and assume that a union bargains over the low skilled labor wage. This causes unemployment, but the growth effect is...

Schumpeterian growth theory has operationalized Schumpeter’s notion of creative destruction by developing models based on this concept. These models shed light on several aspects of the growth process that could not be properly addressed by alternative theories. In this survey, we focus on...