This thesis introduces and studies a typed lambda calculus with higher-order primitive recursion over inductive datatypes which has the property that all definable number-theoretic functions are polynomial time computable. This is achieved by imposing type-theoretic restrictions on the way results of recursive calls can be used. The main technical result is the proof of the characteristic property of this system. It proceeds by exhibiting a category-theoretic model in which all morphisms are polynomial time computable by construction. The second more subtle goal of the thesis is to illustrate the usefulness of this semantic technique as a means for guiding the development of syntactic systems, in particular typed lambda calculi, and to study their meta-theoretic properties. Minor results are a type checking algorithm for the developed typed lambda calculus and the construction of combinatory algebras consisting of polynomial time algorithms in the style of the first Kleene algebra.