Economic growth, technological development and the role of institutions

This thesis is a contribution to the development of a better understanding of the process of technological development and how this process can be influenced by particular institutions. First, I consider the long-term relationship between technological development and endogenous property rights institutions. I show that not only can the type of property rights institution affect both the level and distribution of technological development across agents, but also the level and distribution of technology can affect the choice of institution. This creates a feedback effect in which patterns of technological development cause particular institutions to persist endogenously over time.; I also examine the relationship between different components of the innovation process which together facilitate the growth of productivity through technological development. Motivated by empirical evidence that there is more to innovation than R&D, I consider the theoretical implications of separating innovation into two distinct processes: first, the discovery of new technologies in R&D, and second the implementation of these new technologies into existing production operations. Institutional factors that affect the interaction between these different components can then affect the overall rate of innovation and technological development.; Finally I consider the role of incentives in encouraging technological investment by private firms. Standard growth theory suggests that firms that develop new technologies must be protected from imitation by rivals in order to receive monopoly profits to compensate them for their initial investment. But when firms participate in a labour market requiring search and bidding for workers, potential labour market returns to innovation can offset the need for the protection of monopoly power in the product market. This in turn can have important implications for institutions governing intellectual property rights.