This paper is an extension of the Aghion and Howitt's model (1992). The new feature is that the qualification of the skilled labor force depends on the technology level in the economy. On the other hand, the R&D effort made in the economy depends upon the research sector's expectations about the "productive capabilities" of the skilled labor in using the new technology, which affects the price of the patent.
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Length: 4 pages Date of creation: 1997 Date of revision: Handle: RePEc:fth:inecpu:150
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Find related papers by JEL classification: O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General