The implications of innovations and wage structure rigidity on economic growth and unemployment: A Schumpeterian approach to endogenous growth theory

Arbeitspapier

The approach put forward in this article is based on Schumpeter`s idea of creative destruction, the competitive process by which entrepreneurs are always looking for new ideas that will render their rivals` ideas obsolete. By focusing explicity on innovation as an economic activity with different economic causes and effects, this article tries to open the door to a deeper understanding of how labor market rigidities in form of wage structure rigidities affect longrun growth through their effects on economic agent`s incentives to engage in innovative or more generally knowledge-producing activities. That is, to the extent that wage structure rigidities limits the ability of a successful innovator to capture monopoly rents from his or her innovations, it will be harmful to growth and employment.

Object Details

• ISBN: 3931052087
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: BERG Working Paper Series on Government and Growth ; No. 26

Classification and Topics

• Classification: Wirtschaft
• Subject: innovation ; labor market rigidity ; wage (structure) rigidity ; economic growth ; unemployment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nusser, Michael
• Event: Veröffentlichung
• (who): Bamberg University, Bamberg Economic Research Group on Government and Growth (BERG)
• (where): Bamberg
• (when): 1998

Further information

• Handle: http://hdl.handle.net/10419/39694
• Last update: 10.03.2025, 11:41 AM CET