Comment on the Papers by Scharler et al. and by Redding et al.

√Oesterreichische NationalbankEurosystemWorkshopsProceedings of OeNB WorkshopsCurrent Issues of Economic GrowthMarch 5, 2004No. 2 Opinions expressed by the authors of studies do not necessarily reflect the official viewpoint of the OeNB. The presented articles were prepared for an OeNB workshop and therefore a revised version may be published in other journals. 4 WORKSHOPS NO. 2/2004 Comment on the Papers by Scharler et al. and by Redding et al. Robert M. Kunst University of Vienna Both of these papers are related to the research field of endogenous growth and, more particularly, to the effects of inventions on economic growth. In economics, technological progress means an increase in productivity, i.e. more output at the same-value of input. Part of it is caused by inventions (new products, new production technologies, or major changes of old technologies), part of it by learning-by-doing etc. Inventions can be rewarding to the inventor or to others who adopt the new creation. Inventions may be transferred, adapted, or imported. The (non-academic) literature as well as history are full of anecdotes on inventors who were unable to reap the profits that eventually arose from their ideas. A popular cartoon character, Gyro Gearloose, may serve as an example. The presented papers contribute to several aspects of this general process: 1) improving the environment for inventions ...