We present a class of dynamic general-equilibrium models of education, innovation and technology transfer to explain the evolution of industries and aggregate growth in closed and open economies. Firms employ educated workers in order to develop higher-quality products. The realization of...

Summary Based on a stochastic dynamic model of a firm's optimal innovative behavior we derive a simultaneous equation system for product and process innovations with intertemporal spillover effects. We estimate various versions of the model with dichotomous innovation data at the firm level by...

Summary Based on an extended game-theoretic innovation-race model, we derive some Schumpeterian hypotheses of the impact of technological rivalry, market power, technological opportunities and demand expectations on the timing of product and process innovations. Using innovation data at the firm...