The Spillover Effects of Innovative Ideas on Human Capital

Abstract

This paper extends a two-period Overlapping Generations model of endogenous growth where the interactions between public infrastructure and human capital with R&D activities, and growth are studied. The paper makes two important contributions. First, it accounts for the spillover e¤ect of the stock of ideas on learning which in turn promotes the production of innovative technologies. In doing so, it brings to the fore a two-way interaction between human capital and innovation. The paper then applies various econometric methods, which con…rm the above theoretical thesis. Second, the solutions of the model emphasise the important role public spending on infrastructure, human capital and R&D can play in promoting economic growth. However, the …ndings also show that trade-o¤s in the allocation of public spending may inevitably emerge. In particular, investment in public infrastructure at the expense of spending on R&D is less likely to succeed in promoting economic growth, whereas it may be more e¤ective to foster growth through an o¤setting cut in another productive component, namely, education. In light of these potential trade-o¤s, governments in low-income countries need to use their limited budgets as part of holistic measures in order to achieve e¢ cient outcomes.

Tourism‐led growth hypothesis: International tourism versus domestic tourism‐Evidence from China

“…Human capital improves the production capacities (Schultz, 1961). Since the increase in human capital can lead to the improvement in the assets of firms and the growth in labour productivity, the accumulation of human capital can lead to spillover effects (Alpaslan & Ali, 2018; Chang et al, 2016). Acemoglu (1996) explains firms will invest more in physical capital, and research and development when human capital increases because firms expect growth.…”

Growth and welfare in mixed health system financing with physician dual practice in a developing economy: a case of Indonesia

“…Given this, we then parametrize . For the production of health infrastructure, the learning externality parameter, , is parametrized using the value of Alpaslan and Ali ( 2018 ), which equals 0.3. The country-specific government spending efficiency parameter for Indonesia is calculated based on the index values of Dabla-Norris et al.…”

Analysis of the Human Resource Quality Under the Terms of Innovative Economy

“…At the regional or national level of the innovative economy traditional industries and economic sectors actively change their essence under the influence of new knowledge: goals, means, technologies, results. Production that turns out to be incapable of changes becomes at best ineffective, and at worst -unsustainable [8]. At the same time, such economy presents different demands on employees in a wide range of professions and spheres of activity, and generally these requirements are related to the use of intellectual potential [9].…”