In my view, the fundamental insight provided by the Solow model is not adequately
captured by the empirical specification employed by MRW, which has led to some confusion
in the applied literature just because the MRW specification is generally presumed as
an estimate of the Solow model. The prevailing confusion becomes immediately evident
once the historical context is reconsidered. The Harrod–Domar model has emphasized
exogenous factor accumulation as a determinant of knife-edge growth. As a response to
the Harrod–Domar model, the Solow model has shown that steady-state growth is driven
by technological change, while the adjustment to stable steady-state growth is achieved by
endogenous changes in factor accumulation. That is, the Solow model does not emphasize
factor accumulation as a determinant of long-run growth.