A Non-linear Development Dynamics of Capital Accumulation, Distribution and Technological Innovation

Abstract: It is elaborated a development dynamic model of accumulation, growth and distribution in which endogenous technological innovation plays a significant role. Firms ’ rate of labour-saving technological innovation is made to depend non-linearly on the distributive (wage and profit) shares, with the latter determining both the incentives to innovate and the availability of funding to carry it out. As it turns out, the direction and the intensity of the effect of a change in distribution on the rates of accumulation and growth depend on the prevailing distribution, with a similar dependence applying – alongside the relative bargaining power of capitalists and workers – to the dynamic stability properties of the system. Hence, the model does not rely on full capacity utilisation being reached for a change in the accumulation and growth regime to take place. Key words: capital accumulation, distribution, technological innovation Resumo: Elabora-se um modelo de desenvolvimento dinâmico de acumulação de capital, crescimento e distribuição em que inovação tecnológica endógena desempenha um papel fundamental. A taxa de inovação tecnológica poupadora de mão-de-obra das firmas depende não-linearmente da distribuição entre salários e lucros, com esta determinando tanto os incentivos à inovação quanto a disponibilidade de fundos para financiá-la. Como resultado, a direção e a intensidade do efeito de uma mudança n