idle workers, is assumed to harness this potential by involving them in the innovation process. Results show that a firm … forgetting, and the pace of innovation are critical factors influencing production efficiency in both the short and long term …. The co-evolution of production and innovation processes emerges in our model through the two-sided effects of idleness …

credit and innovation markets. The interplay between these two frictions generates a nonlinear relationship between finance … and growth. Financial development eases the financing of innovation but can exacerbate bottlenecks in R&D. In a …