An average machine lags in terms of productivity and technological advancement behind a cutting-edge machine. This lag was first defined by Cummins and Violante (2002) as the technology gap. Using the vector error correction model, I show that the technology gap is cointegrated with human...

In this article I demonstrate the relationship between research and development expenditure, and rm productivity. Using data envelopment, I construct a measure of the firm-level distance from the industry-wide productivity frontier. Firms ex-ante further from the productivity frontier invest...

Directed technical change is to a large extent driven by changes in the supply of workforce skills. I demonstrate that directed technical change does not respond to changes in the skill saturation of the workforce in a way that fully reflects supply of the actual existing skill level. I estimate...