Sources and uses of knowledge in a dynamic network technology
We estimate a dynamic network technology where new knowledge in the form of publications in STEM (science, technology, engineering, and mathematics) is an intermediate product. Knowledge is produced in the first stage of production and is used in the second stage of production to produce a final output of real consumption, which equals gross domestic product minus investment spending on physical capital minus research and development expenditures. Knowledge also spills over between producers as it becomes disseminated.