Includes bibliographical references (p. [343]-350) and index.

Part 1 Growth and technology: facts about growth, the contribution of industrial innovation; technology as an economic commodity; method and organization of the book. Part 2 Traditional growth theory: solow; optimal savings; learning by doing; basic research. Part 3 Expanding product variety: brand proliferation; public knowledge capital; industrial policies; welfare. Part 4 Rising product quality: the basic model; endogenous quality increments; welfare. Part 5 Factor accumulation: physical capital; human capital; country size and resource composition. Part 6 Small open economy: a model with nontraded intermediates; trade and growth; trade and welfare; international capital flows; international knowledge flows. Part 7 Dynamic comparative advantage: international brand proliferation; international quality competition; multinational corporations; patent licensing. Part 8 Hysteresis: a benchmark economy; steady states; equal-wage trajectories; unequal-wage trajectories; R&D subsidies. Part 9 Trade and growth: diffusion of knowledge; trade between similar countries; trade with uneven innovation; trade between dissimilar countries. Part 10 international transmission of policies: quality upgrading - a graphical treatment; R&D subsidies; production subsidies; trade policies. Part 11 Imitation: a model of imitation; steady-state equilibrium; determinants of innovation and imitation; determinants of relative wages. Part 12 Product cycles: imitation with rising product quality; steady-state equilibrium; efficient followers; inefficient followers. Part 13 Lessons about growth.

In traditional growth theory innovation is treated as an exogenous process or by-product of investment in machinery and equipment. Here, the authors develop an approach in which innovation is viewed as a deliberate outgrowth of investments in industrial research by profit-seeking agents.