This paper reviews recent developments in the analysis of innovation, skills and wages. It discuss some problems and puzzles affecting the emerging neoclassical literature on these topics. Several shortcoming are identified, from poor structural models to excessive reliance on traditional proxies of innovation activities. The paper claims that in investigating the skills and wages impact of innovation, mainstream economics lost some useful insight from Schumpeterian tradition. It concludes that a more correct approach to labour market impact of innovation could benefits from a recovery of Schumpeterian legacy and a more attentive use of Innovation Surveys as a tool to investigate the diversity of innovative efforts and their impact on labour input.
Available at: http://works.bepress.com/stefanosupino/2/