Economics of an Innovation System: Inside and Outside the Black Box [Hardcover]

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.

Introduction  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-stl'