Complex sentence: Within the confines of Solow's model, this known technology is assumed to be constantly improving and therefore the products of this technology (the new capital) are expected to be more productive and thus more valuable.
Split into simpler sentences: Within the confines of Solow's model, this known technology is assumed to be constantly improving. Consequently, the products of this technology (the new capital) are expected to be more productive as well as more valuable.