Attention has increasingly been shifted towards the long-run perspective on technological innovation, which suggests that progress comes in waves, each one originated by a major breakthrough or general purpose technology (GPT). This paper seeks to assess whether nanotechnology is likely to...

The paper investigates the mechanics through which novel technological principles are developed and diffused throughout an economy consisting of a technologically heterogeneous ensemble of firms. In the model entrepreneurs invest in the discovery and in the diffusion of a technological principle...