Accumulation of Knowledge and Accumulation of Capital in Early ‘Theories’ of Growth and Development
Posted: 3 May 2010
Date Written: 2010
This paper argues that prior to Adam Smith economic progress was largely conceived as being based on the accumulation of knowledge. The development by Turgot and Smith of a concept of capital that subsumed other factors contributing to development led their followers to focus on capital to the neglect of the independent role of knowledge. The paper demonstrates that this paradigmatic shift was identified and challenged by Bentham, Hodgskin and Rae who argued for the independent role of innovation but without lasting impact.
Keywords: Knowledge, Capital, Accumulation, Innovation
JEL Classification: B11, B12, O10, O30
Suggested Citation: Suggested Citation