Foellmi, Reto; Wuergler, Tobias; Zweimüller, Josef - C.E.P.R. Discussion Papers - 2009
We study a model of endogenous growth where firms invest both in product and process innovations. Product innovations … (that open up completely new product lines) satisfy the advanced wants of the rich. Subsequent process innovations (that … egalitarian society creates strong incentives for process innovations (such as the Model T) whereas an unequal society creates …