We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A …

"We study a dynamic general equilibrium model where innovation takes the form of the introduction new goods, whose … production requires skilled workers. Innovation is followed by a costly process of standardization, whereby these new goods are … substitution between goods and other parameters. Third, we show that the interplay between innovation and standardization may lead …

“cutthroat” capitalism that generates greater inequality and more innovation and will become the technology leaders, while others …