The international economics of resources and resource ... - Index of

328 F. Beckenbach, R. Briegel
component. Furthermore two perspectives on the sectoral activities are integrated:
the perspective of ordering (buying) and delivering (selling). For each sector the
ordering and delivering activities are balanced to the same amount. The basic
structure of an input/output table is depicted in Fig. 4.
4 Linking innovation dynamics and growth
The emergence of economic growth can now be explained by using this 3-level
approach. In each sector a multitude of agents is adapting (in different ways) to
the market competition which in turn is generated by the agents themselves. In the
given context the most important option for an agent to improve his competitive
position is to create novelties. Depending on the frequency of successful
innovations and imitations a different diffusion dynamics in terms of increase of
total demand and substitution of the demand for old products will result in each
sector. Summing up the time-dependent sectoral final demand components in
each time step (Yi(t)) is tantamount to the total net production (net value or value
added).
Yt ðÞ¼ Xn
i¼1
YiðÞ: t
ð13Þ
The gross production in each sector can be calculated by taking into account the
constant structure of the intermediary production. Denoting the corresponding
coefficients (i.e. the total production share of the intermediary commodity j in a
given sector i) by At ðÞ¼ aijðÞ t the Leontief inverse multiplied by the vector of
sectoral net productions Yt ðÞ¼fYiðÞ t g comes to the vector of sectoral gross
production (I being the unit matrix):
XðÞ¼ t ðIAðÞ t Þ 1 Yt ðÞ: ð14Þ
Summing up the time dependent components of X(t) is tantamount to total gross
production.
Fig. 4 Specification of inter-sectoral diffusion dynamics