for around 17% of the total increase in the top 1% income share between 1975 and 2010. Yet, innovation does not appear to … increase other measures of inequality which do not focus on top incomes. Next, we show that the positive effects of innovation … vindicate the Schumpeterian view whereby the rise in top income shares is partly related to innovation-led growth, where …

We analyze how demand conditions faced by a firm impacts its innovation decisions. To disentangle the direction of … causality between innovation and demand conditions, we construct a firm-level export demand shock which responds to aggregate … that this finding of a skewed innovation response to common demand shocks arises naturally from a model of endogenous …