We develop an endogenous growth model which is focussed on entrepreneurial skills and their impact
on growth and convergence. Our work is closely related to the model by Acemoglu et al. (2006) but
extends their analysis in some important respects. Entrepreneurs in our model dispose of two different
skills (technological and systemic skills) and we are able to show that it is not only the absolute skill
level but also the aggregate distribution of different skills that drives growth and convergence of an
economy towards the world technology frontier.
- distance to frontier
- Key words: growth