Innovative and absorptive capacity effects of education in a small open economy

Arbeitspapier

Evidence points to relatively low supply elasticities for workers skilled for research and development (R&D), which can hamper innovation and growth. Increasing the supply of R&D skills will expand an economy's innovative capacity. A simultaneous effect of increased education, which is particularly important for small, open economies, is to raise final goods producers' capacity to absorb cross-border knowledge spillovers. In a calibrated endogenous growth model for Norway, we find that increasing the share of highly educated workers has pronounced absorptive capacity effects that partially crowd out R&D-based innovation. Both innovative and absorptive capacity expansions contribute to higher growth and welfare.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Papers ; No. 694

Classification and Topics

• Classification: Wirtschaft ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; One, Two, and Multisector Growth Models
• Subject: Absorptive capacity ; Computable general equilibrium model ; Endogenous growth ; Human capital ; Innovation ; Research and Development

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bye, Brita ; Fæhn, Taran
• Event: Veröffentlichung
• (who): Statistics Norway, Research Department
• (where): Oslo
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/192676
• Last update: 10.03.2025, 11:46 AM CET