We study the interactions between technological innovation, investment in human capital and child labor. In our setting … firms decide on innovation, then households decide on education. In equilibrium the presence of inefficient child labor … on child labor are welfare reducing, while a subsidy to innovation is the right tool to eliminate child labor and …

among firms that undertake innovation through knowledge use rather than through knowledge generation. …The beneficial effects of innovation for firms' performance and competitiveness are well documented, but it has been … suggested in recent years that innovation regimes differ between advanced and emerging economies. While advanced economies rely …