Human capital and overinvestment in R&D

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18 Citations (Scopus)

Abstract

We introduce a negative effect of technological development on human capital accumulation in a growth model with endogenous innovation and accumulation of human capital. This implies a negative externality of R&D in human capital accumulation. Some calibration exercises suggest that this distortion may be sufficiently strong not only to offset the usual effects of spillovers and of returns to specialization but also to induce overinvestment in R&D.

Original languageEnglish
Pages (from-to)573-591
Number of pages19
JournalScandinavian Journal Of Economics
Volume109
Issue number3
DOIs
Publication statusPublished - 1 Sep 2007

Keywords

  • Endogenous growth
  • Human capital
  • Optimal R&D

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