Human Capital, Investment and Innovation: What Are the Connections?
Fingold and Soskice (1988) argue that Britain is trapped in a "low-skills" equilibrium. In Redding (1996), this notion is formalized in a dynamic model which relies on strategic complementarities between firms' investments in R&D and workers' investments in human capital. In this paper, we investigate the firms' side of the story, notably wheher their investments in fixed capital and R&D are influenced by the avilability of human capital.
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|Date of creation:||1997|
|Date of revision:|
|Contact details of provider:|| Postal: United Kingdom; Centre for Economic Performance & Institute of Economics and Statistics, Oxford University. Manor Road. Oxford OX1 3Ul|
Web page: http://www.economics.ox.ac.uk/
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