innovation activities. The selection of high-skill managers is more important for innovation activities. As the economy … investments, but little selection. Closer to the world technology frontier, there is a switch to an innovation-based strategy with …

innovation and imitation. We develop a theoretical model showing that skilled labour has a higher growth-enhancing effect closer … to the technological frontier under the reasonable assumption that innovation is a relatively more skill intensive … the two separate margins of primary/secondary and tertiary education. Interestingly, the latter type of schooling proves …

competition and innovation uncovered by Scherer (1967). This model in turn delivers a number of testable prediction. A first … testable prediction is that the relationship between competition and innovation follows an inverted- U pattern and the average … innovation in "frontier" firms but may discourage it in "non-frontier" firms. A third prediction is that there is complementarity …

As countries develop, the main driver of economic growth shifts from imitation to innovation. These two sources of … imitation-based to an innovation-based economy calls the old welfare state model into question. It is not so much the size of … market-driven innovation process. This idea of a strategic state that targets its investments to maximize growth in the face …

frontier. In vertically integrated firms, owners (managers) have to spend time both on production and innovation activities …, and this creates managerial overload, and discourages innovation. Outsourcing of some production activities mitigates the … frontier, the value of innovation increases, encouraging outsourcing. …