Acemoglu, Daron; Gancia, Gino; Zilibotti, Fabrizio - In: Journal of Economic Theory 147 (2012) 2, pp. 570-601
We study a dynamic general equilibrium model where innovation takes the form of the introduction of new goods whose production requires skilled workers. Innovation is followed by a costly process of standardization, whereby these new goods are adapted to be produced using unskilled labor. Our...