Introduction to Comparative Models for Innovation Theory (Review of Chapter 14; Introduction to Modern Economic Growth by Daron Acemoglu, 2008)

This review paper introduces basic endogenous technological change models based on comparative innovations with research and development (R&D). Mainly this paper explains three endogenous growth models. Those are The Baseline Model of Competitive Innovations, One-Sector Schumpeterian Growth Model, and Step-by-Step Innovations Model. The methodology of this paper based on the review paper structure and referenced to the book: Introduction to Modern Economic Growth by Daron Acemoglu written in 2008. Also, qualitative review concepts have meaningfully integrated into this study. This review has identified, these models were relatively interconnected with the R&D and Innovations. These all models have identified technology is generating new machine, and machines are working in the production process with skill labors in R&D field. Machines have been utilizing in production. It has been working to either improve the quality of an existing product or lower production costs. However, innovation is not the same as creating machines. Because innovation has been increasing quality and reducing costs in the production using the replacement impact, which should be more involved in the Research and Development process (R&D) than those who make just machines. In conclusion, the replacement impact has based on the previous version of the technology. Simply replacement impact is a comparative replacement. This replacement has basted on the R&D. Therefore, this deference is made by comparative innovations.