A Theory of Defensive Skill-based Innovation and Globalization

Thierry Verdier
Authors registered in the RePEc Author Service: Mathias Thoenig

No 3416, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper considers a dynamic model of innovations in which firms can endogenously bias the direction of technological change. Both in a North-North and North-South context, we show that, when globalization triggers an increased threat of technological leapfrogging or imitation, firms tend to respond to that threat by biasing the direction of their innovations towards skilled labour-intensive technologies. We show that this process of defensive skill biased innovations generates an increase in wage inequalities in both regions. We then discuss suggestive empirical evidence of the existence of defensive skill biased technical change.

Keywords: Trade integration; Technical change; Skill bias; Defensive innovation (search for similar items in EconPapers)
JEL-codes: F12 J31 O33 (search for similar items in EconPapers)
Date: 2002-06
New Economics Papers: this item is included in nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Journal Article: A Theory of Defensive Skill-Biased Innovation and Globalization (2003)
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