No CrossRef data available.
Article contents
Creative destruction, human capital accumulation, andgrowthin a digital economy
Published online by Cambridge University Press: 10 November 2023
Abstract
The rapid development of the digital economy has highlighted the crucial role of data in economic growth. This study investigates the impact of two types of innovation on long-term growth by incorporating data into a model of creative destruction and knowledge accumulation. Unlike traditional factors, data exhibit nonrivalry between the two research and development (R&D) sectors, thereby influencing the growth rate of economic outputs simultaneously without interference. Our findings reveal the existence of a balanced growth path (BGP) in both the decentralized economy and the social planner’s economy. In horizontal innovation, data can be transformed into digital knowledge to promote the economic growth [Cong et al. (2021)]. In addition to horizontal innovation, the utilization of data in vertical innovation also enhances the success rate of innovation, with a gradual decrease in per capita data usage on the BGP. Moreover, as agents accumulate human capital, the economy achieves higher output levels, effectively addressing consumer privacy concerns. However, along the transitional path, insufficient data provision by both R&D sectors leads to lower economic growth rates or more intense economic fluctuations, necessitating policy interventions.
- Type
- Articles
- Information
- Copyright
- © The Author(s), 2023. Published by Cambridge University Press
Footnotes
We thank Xiaoyong Cui, Chan Wang, Danxia Xie, Longtian Zhang, Pengfei Sun, Junru Chen and the anonymous associate editor and referees for their feedback. All remaining errors are the authors.