Endogenous growth through technological innovation

As a further point to make on the last post, the tentative results imply that growth could be sustained indefinitely rather than heading to a steady state, although it would slow through diminishing returns to capital. Indefinitely here means a few decades, since economies could change hugely in the period rendering the model invalid. Pretty short time period for "indefinitely"!

My estimations indicate that having a higher proportion of the world's computers and researchers tends to increase growth, and that other countries cannot obtain, in the short term, the growth benefits associated with their ownership just by transferring technology from abroad. Thus, there seems to be a definite advantage with being a technological pioneer, which may help to explain the ability of economically advantaged countries to sustain their growth over time.