Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192676 
Year of Publication: 
2012
Series/Report no.: 
Discussion Papers No. 694
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
Evidence points to relatively low supply elasticities for workers skilled for research and development (R&D), which can hamper innovation and growth. Increasing the supply of R&D skills will expand an economy's innovative capacity. A simultaneous effect of increased education, which is particularly important for small, open economies, is to raise final goods producers' capacity to absorb cross-border knowledge spillovers. In a calibrated endogenous growth model for Norway, we find that increasing the share of highly educated workers has pronounced absorptive capacity effects that partially crowd out R&D-based innovation. Both innovative and absorptive capacity expansions contribute to higher growth and welfare.
Subjects: 
Absorptive capacity
Computable general equilibrium model
Endogenous growth
Human capital
Innovation
Research and Development
JEL: 
O30
O41
Document Type: 
Working Paper

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