Abstract

COURVISANOS, Jerry  and  VERSPAGEN, Bart. Innovation and investment in capitalist economies 1870-2000: kaleckian dynamics and evolutionary life cycles. Inv. Econ [online]. 2002, vol.62, n.242, pp.33-80. ISSN 0185-1667.

A Kaleckian-based investment cycle model is set up with the double-sided profit and investment relationship, upon which is added the innovation industry life-cycle processes that provide the stimulus for investment. By threading together evolutionary life cycle of industry development through innovative processes with Kaleckian extended reproduction through volatility of the investment process, the instability of cycles and their trend growth can be iden tified. Data on five OECD countries for 1870-2000 are examined on patents (in­ novation), GDP and investment to understand these dynamic processes. This empirical evidence indicates the need to re-examine the way strategies are formed and developed in both the private and public sectors for more effective appropriation of innovation into the investment planning process.

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