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By T. Asada, T. Ishikawa

In August 2005, a small yet vital convention came about at Chuo college in Tokyo, Japan. The Chuo assembly on Economics of Time and area 2005 (Chuo METS 05) aimed to complement the respective disciplines of the economics of time (dynamic economics) and the economics of house (spatial economics) and to extend their applicability within the actual global. The chapters contained herein are in accordance with the papers offered at that convention.

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4. The new investment function Fig. 5. The steady states of the extended model Endogenous Technical Change 49 Fig. 6. The orbits of ut in the extended model Moreover, the map F (Fig. 6) has a new hump between ¯ u 2 and ¯ u 3. This makes the orbits starting at less than ¯ u 2 no longer forward to the lower bound 0. u 2 that have been proved in Sect. 2 should still The properties of ¯ u 1 and ¯ be valid. Thus we only need to consider ¯ u 3. Elsewhere (Gong 2001), I have proved that for some probable functional forms of g(⋅) and h(⋅), irregular cycles can occur in the neighborhood of ¯ u 3.

Moreover, let us denote by n[v] e (t) the amount of labor required to operate equipment of vintage v at [v] [v] [v] −d(t−v) I(v). In total we full capacity. Then we have n[v] e (t) = xe (t)k (t) = xe (t)e [v] [v] t t −d(t−v) I(v)dv, where Nn(t) is the necessary write Nn(t) = ͐ −∞ne (t)dv = ͐ −∞xe (t)e amount of employment when all the existing capital stock is fully utilized, or the normal level of employment to produce capacity output. Harrodian Dynamics Under Imperfect Competition 31 The long-run production function is assumed to be represented by Yn(t) = F(Nn(t), K(t)) (3) where Yn(t) is the level of capacity output at time t.

Inventions are new knowledge, new patents, and new findings. They provide the technological resource for innovations, which are supposed to be carried out by an entrepreneur. ” (Schumpeter 1934, p. 88) Yet in the current literature, all inventions are assumed to be automatically carried into innovations. This chapter tries to contribute to the research in technical innovation by distinguishing innovation from invention. We shall still follow the idea of a “cumulative cause of knowledge,” as proposed by new growth theorists, so that the technological resources for innovation are not scare.

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