Neutral or factor saving innovations?

Hernando Zuleta and Andres Zambrano

No 17134, Documentos CEDE from Universidad de los Andes, Facultad de Economía, CEDE

Abstract: We present a theoretical argument to identify the conditions under which a firm prefers to invest in factor saving innovations rather than neutral innovations. We prove that incentives to invest in factor saving innovations positively depend on i) total factor productivity and ii) the scarcity of the factor.

Keywords: Factor Shares; Production Function; Productivity. (search for similar items in EconPapers)
JEL-codes: E01 E25 O11 O30 O41 O47 (search for similar items in EconPapers)
Pages: 11
Date: 2018-11-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:col:000089:017134

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