Why can complex knowledge be produced in some places but not in others? Regional knowledge complexity possesses a powerful explanatory and predictive capacity for regional innovation and economic development, yet the mechanisms underlying the formation of regional knowledge complexity remain...

We develop a model in which innovations in an economy's growth potential are an important driving force of the business cycle. The frame- work shares the emphasis of the recent “new shock” literature on revisions of beliefs about the future as a source of fluctuations, but differs by tieing...

Growth and imports are correlated across countries, but the mechanisms underlying this relationship are not well understood. I develop a multi-country model in which imports and growth are connected by technological innovations and their international diffusion through trade. Fitting the model...

I develop a multicountry-model in which economic growth is driven mainly by domestic innovation and the adoption of foreign technologies embodied in traded intermediate goods. Fitting the model to data on innovation, output per capita, and trade in varieties for the period 1996-2007, I estimate...

The relative size of the manufacturing sector in an economy depends on its stage of development. As economies become more industrialized, employment and output increase rapidly. Eventually, for large-enough levels of development, the contribution of the manufacturing sector starts declining in...