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This paper is concerned with measuring and influencing the direction of technological change. First, it provides a comprehensive assessment of the factor bias of technological change using panel data from the World Input-Output Database (WIOD) for 25 EU countries from 1995 to 2009. We measure...
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elasticity of substitution between capital and labour. We estimate two different production functions, namely Cobb-Douglas and … associated with R&D investment and perhaps with increasing elasticity of substitution between capital and labour. Hence, our … results suggest that there is no growth paradox in Europe: the R&D factor and the elasticity of substitution between capital …
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