technologies as one of major drivers for growth, especially in developing countries. However, while adopting a new technology … a new capital good may require on-the-job training or fresh investment in the educational system or even physical … changes on the assembly line. This paper presents an AK model with embodied capital technology, i.e., new ideas or …

between the old andthe new technology and on whether firms compete in prices. Without price competition, a partiallock … sense completely disappears, although the old technology may keepsome market share in some periods as the new technology is …