ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book examines what is outside the black box and provides models of path-dependent endogenous growth. It provides an endogenous growth model that identifies three patterns in the division of labor in terms of innovation between general purpose technology (GPT) and special purpose technology (SPT) sectors: the SPT stage; the GPT–SPT joint-research stage; and the autonomous GPT stage. The book outlines a multi-sector endogenous innovation model that is able to account for the dynamics of comparative advantage of each sector within the economy. It suggests that two kinds of learning effects exist in research and development: advantages of backwardness and forwardness. The book analyzes two types of innovation: core-driven and bottleneck-removing innovations in terms of management of focusing device. It explores the determinants of innovation at a more micro-level within organizations, given the focusing device, in terms of knowledge communication among organization members.
