Scale effects in Schumpeterian models of economic growth

Early models of Schumpeterian growth incorporate scale effects predicting t hat large economies grow faster than small economies, and that: population growth causes accelerating per capita income growth. An absence of clear em pirical evidence for these scale effects has led some researchers to questi on the foundations underlying the Schumpeterian approach to growth. This pa per reviews empirical evidence on the relationship between scale and growth , and recent attempts to construct Schumpeterian growth models without scal e effects.