1st Edition

Economics of an Innovation System
Inside and Outside the Black Box

ISBN 9781138388536
Published March 18, 2019 by Routledge
280 Pages 21 B/W Illustrations

USD $155.00

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Book Description

Existing literature looks at national innovation systems from the perspective of either "inside the black box" or "outside the black box". This is the first book that analyzes both the inside and outside of the black box using a general equilibrium framework.

The book looks at what is outside the black box and provides models of path-dependent endogenous growth;  examines the dynamics of the black box from the intersectoral perspective of the economy; and proposes an innovation flow matrix. It also takes into account both business cycles and endogenous innovation in the unified New Keynesian dynamic stochastic general equilibrium (DSGE) model and examines how business cycles and other policy shocks affect endogenous innovation.

The unified treatment of the national innovation system from perspectives both inside and outside the black box using rigorous economic models and empirical analyses makes this an enlightening work, shedding new light on innovation economics.

Table of Contents


Part I: Outside the Black Box: Path-dependent Growth

1. Path-dependent Economic Growth with Technological Trajectory

2. Path-dependent Economic Progress and Regress

3. Division of Labor in Innovation between General Purpose Technology and Special Purpose Technology

Part II: Dynamics of the Black Box: Intersectoral Growth

4. Advantages of Backwardness and Forwardness with Shifting Comparative Advantage

5. Changing Productive Relations, Linkage Effects and Industrialization

6. Structural Change and Economic Growth with Relation-specific Investment

Part III: Inside the Black Box: Innovation Mechanism

7. Focusing Device as Innovation Mechanism and Cluster Growth

8. Managing Innovation Probabilities through Focusing Device

9. Three-step Flow of Knowledge Communication

Part IV: Measuring the Black Box: Innovation Flow Matrix and Policy Evaluation

10. Model of Intersectoral Flow of Technology using Technology and Innovation flow Matrices

11. Estimating Innovation Flow Matrix and Innovation Linkages in the East Asian region and the United States

12. Endogenous Innovation and Macroeconomic Shocks in a New Keynesian DSGE Model

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Tsutomu Harada is Professor of Industrial Economics at Kobe University, Japan. He received a PhD in Economics from Stanford University and a PhD in Business Administration from Kobe University. His research interests include innovation economics, technology management, and strategy.