Implementation of technological breakthroughs at sector level and the technology-bias

Different goods are produced by different sectors in an economy. The fact that sectors use different production technologies is named technology-bias. The technology-bias is well documented and has important theoretical implications for economic growth and unemployment. We provide a theoretical model that explains the technology-bias and predicts its development. We provide empirical evidence on the development of the technology-bias and explain this development by using our model-results. Last not least, we discuss the implications of our findings for the existing growth literature and structural change literature.