Region innovative potential as a growth factor of aggregate welfare

Abstract:

The paper develops further the econometric analysis of the aggregative regional non-linear production functions of the “flows-flows” type with two examples of the Gorbunov production function with VES, generated by the concave quadratic functions and by generalized Solow functions. The research demonstrates the controversial results of empirical analysis (results of econometric tests), but it generally supports the hypothesis of the weak positive R&D sector’s impact on the GRP growth; therefore, it contributes to our understanding of the Jones’ hypothesis on zero R&D sector’s impact on economic growth in the country.