We examine human capital's contribution to economy-wide technological progress through two channels – imitation and innovation – innovation being more skill-intensive than imitation. We develop a growth model based on the endogenous ability-driven skill acquisition decision of an individual....

The existing body of literature underscores the crucial role of technology, driven by both innovation and imitation, in fostering economic growth. Human capital emerges as a key factor influencing technology adoption and innovation.We consider a R&D-based growth model to analyze how improvement...