Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Vertical vs. Horizontal Policy in a Capabilities Model of Economic
  Development   Against the background of renewed interest in vertical support policies
targeting specific industries or technologies, we investigate the effects of
vertical vs. horizontal policies in a combinatorial model of economic
development. In the framework we propose, an economy develops by acquiring new
capabilities allowing for the production of an ever greater variety of products
with an increasing complexity. Innovation policy can aim to expand the number
of capabilities (vertical policy) or the ability to combine capabilities
(horizontal policy). The model shows that for low-income countries, the two
policies are complementary. For high-income countries that are specialised in
the most complex products, focusing on horizontal policy only yields the
highest returns. We reflect on the model results in the light of the
contemporary debate on vertical policy.

35
The categories of this paper are: mtrl-th
24
The categories of this paper are: dg-ga
29
The categories of this paper are: funct-an
2
The categories of this paper are: math
27
The categories of this paper are: comp-gas
0
The categories of this paper are: hep-ph
6
The categories of this paper are: astro-ph
8
The categories of this paper are: hep-ex
19
The categories of this paper are: eess
5
The categories of this paper are: gr-qc
22
The categories of this paper are: chao-dyn
37
The categories of this paper are: supr-con
32
The categories of this paper are: atom-ph
20
The categories of this paper are: acc-phys
28
The categories of this paper are: alg-geom
1
The categories of this paper are: cs