Abstract The relative demand for skills has increased considerably in many OECD countries during recent decades. This development is potentially explained by capital-skill complementarity and high growth rates of capital equipment. When production functions are characterized by capital-skill...

R&D subsidies as well as tariffs/export subsidies are often argued to promote economic growth. This paper investigates such unterventions in a model of endogenous growth in which (a) skills are acquired through time spent in learning and 8b) the engine of long-run growth is market-driven R&D...

The role of learning and R&D in economic development is addressed in an endogenous growth model. When human capital is below a threshold level, the model predicts that skills are accumulated as the only growth-generating activity, whereas both innovation activities and learning drive growth...