Innovation and Technological Change: An Austrian-British Comparison

Labor Market Dynamics and Technology Adoption: Theory and Empirical Evidence

“…A similar sectoral selection is proposed in several other studies (e.g. Plummer and Taylor, 2001a;2001b;Andonelli, 1990;Alderman, 2004;Alderman and Fischer, 1992).…”

“…More speci…cally, an individual with ability vector a will accept a job in Sector i, if and only if k i a i rU (a); an outcome that can be derived using equation (2). If ka 1 (<)a 2 and the latter condition holds for a 2 (ka 1 ), then this will hold for ka 1 (a 2 ) too.…”

“…1 At the heart of this theory there is a sector that deliberately produces technological 1 innovations. 2 This sector combines human capital with the existing stock of knowledge to produce new knowledge, which enhances productivity, and is available to other sectors of the economy at virtually zero marginal cost (Stern, 1991). This approach is known as 'innovation-driven' growth (e.g.…”

“…This 2 This approach stems from the earlier contribution of Schumpeter (1934). Even though frequently criticized (for a more detailed review, see Andersen, 1996), it has been widely applied in the recent literature on economic growth.…”