"We study a dynamic general equilibrium model where innovation takes the form of the introduction new goods, whose … production requires skilled workers. Innovation is followed by a costly process of standardization, whereby these new goods are … substitution between goods and other parameters. Third, we show that the interplay between innovation and standardization may lead …

choice between incremental and radical innovation, and on how managers of different ages and human capital are sorted across … measures of creative innovations proxy for innovation quality (average number of citations per patent) and creativity (fraction …