A Theory of Defensive Skill-Biased Innovation and Globalization

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State: Public
Version: Final published version
Serval ID
serval:BIB_86146DA82589
Type
Article: article from journal or magazin.
Collection
Publications
Title
A Theory of Defensive Skill-Biased Innovation and Globalization
Journal
American Economic Review
Author(s)
Thoenig  M., Verdier  T.
ISSN
0002-8282
Publication state
Published
Issued date
06/2003
Peer-reviewed
Oui
Volume
93
Number
3
Pages
709-728
Language
english
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-labor-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
Competitive advantage, wage inequality, trade, technology
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28/08/2009 13:57
Last modification date
20/08/2019 15:45
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