We develop a microeconomic model of endogenous growth where clean and dirty technologies compete in production and innovation-in the sense that research can be directed to either clean or dirty technologies. If dirty technologies are more advanced to start with, the potential transition to clean...

There is substantial heterogeneity across industries in the level of interdependence between new and old technologies. I propose a measure of this interdependence—an index of sequentiality in innovation—which is the transfer rate of patents in a particular industry. I find that...