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- Title
A Theory of Defensive Skill-Biased Innovations and Globalization.
- Authors
Thoenig, Mathias; Verdier, Thierry
- Abstract
This paper considers a dynamic model of innovations in which firms can endogenously bias the direction of technological change. Both in a North--North and North--South context, we show that, when globalization triggers an increased threat of technological leapfrogging or imitation, firms tend to respond to that threat by biasing the direction of their innovations towards skilled-labor-intensive technologies. We show that this process of defensive skill-biased innovations generates an increase in wage inequalities in both regions. We then discuss suggestive empirical evidence of the existence of defensive skill-biased technical change. (JEL F12, O33, J31)
- Subjects
TECHNOLOGICAL innovations; INTERNATIONAL business enterprises; GLOBALIZATION; ECONOMICS
- Publication
American Economic Review, 2003, Vol 93, Issue 3, p709
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/000282803322157052