@ARTICLE{26543120_26560731_2003, 
	author = {Pavel Luksha}, 
	keywords = {, balanced growth, transition economy, economic development, countries with economies in transition, intellectual resourcesinvestment flow},
	title = {Knowledge Rich Industries and Balanced Growth for Transitional Economies},
	journal = {HSE Economic Journal },
	year = {2003},
	volume = {7},
	number = {4},
	pages = {471-495},
	url = {https://ej.hse.ru/en/2003-7-4/26560731.html},
	publisher = {},
	abstract = {In this paper, economic development through knowledge-rich proc­essing industries as a potential dominating path for countries in transi­tion is examined. It is particularly important that all countries in transi­tion are richly endowed with intellectual resources which is shown to be a factor (a) critical for transition, (b) receiving a growing value-added compensation, and (c) giving potential for intellectual rent. A two- industry dynamic model considering intellectual resources demonstrates that there exists optimal distribution of investment allowing to maximize national income, that is, a way for balanced growth in knowledge-rich economy. Government can support this process through re-direction of investment flows to achieve optimal investment distribution and invest­ment into institutional capital. For successful growth through know­ledge-rich industries, R&D sector should also be enhanced to become market-oriented.},
	annote = {In this paper, economic development through knowledge-rich proc­essing industries as a potential dominating path for countries in transi­tion is examined. It is particularly important that all countries in transi­tion are richly endowed with intellectual resources which is shown to be a factor (a) critical for transition, (b) receiving a growing value-added compensation, and (c) giving potential for intellectual rent. A two- industry dynamic model considering intellectual resources demonstrates that there exists optimal distribution of investment allowing to maximize national income, that is, a way for balanced growth in knowledge-rich economy. Government can support this process through re-direction of investment flows to achieve optimal investment distribution and invest­ment into institutional capital. For successful growth through know­ledge-rich industries, R&D sector should also be enhanced to become market-oriented.}
}