Technological Changes in Economic Growth Theory: Neoclassical, Endogenous, and Evolutionary-Institutional Approach


The aim of the research in this paper is to analyse the issue of the treatment of the category of technological changes within the main aspects of economic growth theory. The analysis of the key positions of neoclassical theory (Solow), endogenous approach (Romer), and evolutionary growth theory (Freeman) advocates has pointed to the conclusion that these approaches agree on the fact that the category of technological changes is a key generator of economic growth. Neoclassicists were the first to explicitly analyse the category of technological changes in growth theory. They exerted a strong influence on a large number of governments to allocate significant funds for scientific and research development, to stimulate the creation and diffusion of innovation. Supporters of endogenous theory also see the category of technological changes as a key driver of economic growth. Unlike neoclassicists, they emphasise the importance of externalities, in the form of technological spillover and research and development activities, for the creation and diffusion of innovation. Finally, evolutionary and institutional economists explore the category of technological changes inseparably from the economic and social environment in which they are created and diffused. Recommendations of this research can be of particular use to economic growth and development policy makers in the knowledge economy, whose basic and substantial feature is the so-called fourth industrial revolution

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Aghion, P. & Howitt, P. (1992). A Model of Growth Through Creative Destruction, Econometrica, 60(2), 323-351.

  • Baro, R. & Sala-I-Martin, X. (2004). Economic Growth, Cambridge: MIT Press.

  • Beg, D., Fišer, S. & Dornbuš D. (2010). Makroekonomija, Beograd: Datastatus.

  • Blanchard, O. (2005). Makroekonomija, Zagreb: Mate.

  • Burda, M. & Viploš, Č. (2012). Makroekonomija: Evropski udžbenik, Beograd: Ekonomski fakultet.

  • Cvetanović, S., Obradović S. i Đorđević M. (2011). Hipoteza o konvergenciji u endogenim teorijama rasta, Ekonomske teme, 49 (1), 1-13.

  • Cvetanović, S., Mladenović, I. & Nikolić, M. (2011). Theoretical basis of the concept of national innovation systems, Ekonomika, 57 (4), 14-23.

  • Cvetanović, S. Sredojević, D. (2012). Koncept nacionalnog inovacionog sistema ikonkurentnost privrede, Ekonomske teme,50 (2), 149-167.

  • Cvetanović, S. Mladenović, I. (2015). Ekonomija kapitala i finansiranje razvoja, Niš: vlastito izdanje.

  • Dosi, G. (1982). Technological paradigms and technological trajectories: A suggeste interpretation of the determinants and directions of technical change, Research Policy, 11(3), 147-162.

  • Dragutinović, D., Filipović, M. i Cvetanović, S. (2014). Teorija privrednog rasta i razvoja, Beograd: Ekonomski fakultet.

  • Freeman, Ch. (1987). Technology Policy and Economic Performance: Lessons from Japan, London and New York: Pinter Publichers.

  • Greenhalgh, Ch. & Rogers, M. (2010). Innovation, Intellectual Property and Economic Growth, Princeton: Princeton University Press.

  • Grossman G. & Helpman, E. (1991). Innovation and Growth in the Global Economy, MIT Press, Cambridge.

  • Grossman, G. (1996). Introduction. In: Grossman G. (Ed.), Economic Growth: Theory and Evidence. I, Cheltenham: Edward Elgar, pp. ix-xxxiv Lundvall, B. A., (1992). (Ed.), National Systems of Innovation: Towards a Theory of Innovation and Interactive Learning, London: Pinter Publishers.

  • Lundvall, B. A., (2003). National Innovation Systems: History and Theory, Working Paper, Alborg University.

  • Mervar, A. (2003). Esej o novijim doprinosima teoriji ekonomskog rasta, Ekonomski pregled, 54 (3-4), 369-392.

  • Nelson, R. & Winter, S. (1982). An Evolutionary Theory of Economic Change, Cambridge: Belknap Press/Harvard University Press.

  • Nelson, R. (1993). National Innovation Systems: A Comparative Analysis, New York: Oxford University Press.

  • Petit, P. (1995). Employment and Technical Change. In: Stoneman, P. (Ed), Handbook of the Economics of Innovation and Technical Change, Oxford: Blackwell.

  • Romer, P. (1986). Increasing Returns and Long-Run Growt, The Journal of Political Economy, 94 (5), 1002-1037.

  • Romer, P. (1990). Endogenous Technological Change, Journal of Political Economy, 98, 71-102.

  • Sala-I-Martin, X. (1997). I Just Ran Two Million Regressions, American Economic Review, 87(2), 178-183.

  • Samjuelson, P. &Nordhaus, V. (2009). Ekonomija, Beograd: Mate.

  • Schumpeter, J. (1961). The Theory of Economic Development, New York: A Galaxy Book.

  • Solow, R. (1956). A Contribution to the Theory of Economic Growth, Quarterly Journal of Economics, 70(1), 65-94.

  • Solow, R. (1957). Technical Change and the Aggregate Production Function, The Review of Economics and Statistics, 39(3), 312-320.

  • Švarc, J. (2009). Hrvatska u društvu znanja - prijepori i perspektive inovacijske politike, Zagreb: Školska knjiga i Institut društvenih znanosti „Ivo Pilar“.

  • Todaro, M. & Smith, M. (2011). Economic Development, London: Addison-Wesley.

  • Warsh, K.(2007). Knowledge and the Wealth of Nations: A Story of Economic Discovery, New York: Norton & Company.

  • World Bank (1993). The East Asian Miracle: Economic Growth and Public Policy, New York: Oxford University Press.


Journal + Issues