, so that they can sustain local employment and pay high wages. Policies to subsidise R&D and to encourage intellectual …A common assumption in innovation policy circles is that creative and inventive firms will help to sustain employment … and wages in high wage countries. The view is that firms in high cost production locations that do not innovate are faced …

firm chooses the level of employment; McDonald & Solow, however, drew from Leontief's work to suggest an alternative in …