What is a knowledge production function?
What is a knowledge production function? At the heart of R&D-based growth models is a knowledge/technology production function that describes the evolution of knowledge creation. According to that function, the rate of production of new knowledge depends on the amount of labor engaged in R&D and the existing stock of knowledge available to these researchers. How do you calculate production function? One very simple example of a production function might be Q=K+L, where Q is the quantity of output, K is the amount of capital, and L is the amount of labor used in production. This production function says that...