A multi-country non-linear dynamical model for the study of European growth based on technology and business services

In this paper we study a model for endogenous growth based on technology diffusion across European countries with respect to the major foreign partners. To that aim we disentangle the dynamics of such a problem by considering the single contribution to growth of each country, arising from every other individual country and for every strategic variable of the model. Among those, business services play a leading role for the link supported between innovations and production. Moreover technology growth itself fosters the offshoring process of business services. Our calculations are an outcome of a program we settled for a continuous time estimation which is, in its nature, suitable for the study of the dynamic systems. (C) 2012 Elsevier B.V. All rights reserved.