Why do economies grow at all?

This topic is concerned with theory. What are the conditions under which an economy will grow? Does it require accumulation of factors like capital, or innovation of new ways of using those factors? As innovation and productivity tend to be seen as the main empirical drivers of growth, under what conditions will there be innovation? This gets into the question of what market conditions provide the incentives to innovate, and it turns out that competition - free entry, zero profits, price-taking - is not the best way to draw out innovations, even if it is the most efficient way to organize production given a set of technologies on hand. Thinking about this really gets to the heart of what drives growth: non-rival ideas combined with some excludability.

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  1. 2017.   Heidi L. Williams.   "How Do Patents Affect Research Investments?". National Bureau of Economic Research, Inc   Link
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  26. 1999.   Cecilia Garcia-Penalosa and Eve Caroli and Philippe Aghion.   "Inequality and Economic Growth, The Perspective of the New Growth Theories".   Journal of Economic Literature, 37(4):1615-1660.   Link
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  28. 1998.   Segerstrom, Paul S..   "Endogenous Growth without Scale Effects".   The American Economic Review, 88(5):1290-1310.   Link
  29. 1998.   Young, Alwyn.   "Growth without Scale Effects".   Journal of Political Economy, 106(1):41-63.   Link
  30. 1998.   Peretto, Pietro.   "Technological Change and Population Growth".   Journal of Economic Growth, 3(4):283-311.
  31. 1997.   Kortum, Samuel S..   "Research, Patenting, and Technological Change".   Econometrica, 65(6):1389-1419.   Link
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  37. 1992.   Tsiddon, Daniel.   "A Moral Hazard Trap to Growth".   International Economic Review, 33(2):299-321.   Link
  38. 1992.   Aghion, Philippe and Howitt, Peter.   "A Model of Growth through Creative Destruction".   Econometrica, 60(2):323-351.   Link
  39. 1991.   Young, Alwyn.   "Learning by Doing and the Dynamic Effects of International Trade".   The Quarterly Journal of Economics, 106(2):369-405.   Link
  40. 1991.   Gene M. Grossman and Elhanan Helpman.   "Quality Ladders in the Theory of Growth".   Review of Economic Studies, 58(1):43-61.   Link
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  42. 1990.   Romer, Paul M..   "Endogenous Technological Change".   Journal of Political Economy, 98(5):pp. S71-S102.   Link
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