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We address the notion of dynamic, endogenous diversity and its role in theories of investment and technological innovation. We develop a formal model of an innovation arising from the combination of two existing modules with the objective to optimize the net benefits of diversity. The model...
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This discussion paper resulted in a publication in <I>Structural Change and Economic Dynamics</I>, 2013, 24, 141-156.<P> We address the notion of dynamic, endogenous diversity and its role in theories of investment and technological innovation. We develop a formal model of an innovation arising from the...</p></i>
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