I develop a growth model with three sectors of production (final goods, int
ermediate goods, and R&D), each with a different technology using three inp
uts (labor, capital, and knowledge), and combining elements from three stra
nds of the literature (neoclassical growth, and AK and R&D endogenous growt
h). The paper suggests not only that capital accumulation and innovation ar
e complementary processes, neither of which would take place in the long ru
n without the other, but also that this process can be self-sustaining eith
er through Hicks-neutral knowledge spillovers without capital accumulation,
or through Harrod-neutral knowledge spillovers with capital accumulation.