Skill transferability and the stability of transition pathways- A learning-based explanation for patterns of diffusion

Understanding and governing technology transitions is essential to cope with major challenges of the 21st century such as climate change or digitization. In this paper, a learning-based approach developed explain dynamics different transition pathways. Technological know-how necessary make effective use technical innovations embodied in capital. Firms employees accumulate specific knowledge when working machinery. Radical innovation differs by type pre-existing may be imperfectly transferable across types. This paper addresses implications cross-technology transferability skills for firm-level adoption its consequences direction macro-level technological change. A microeconomically founded model learning introduced. The based on empirical theoretical insights from literature. simulation study using macro-economic ABM Eurace@unibi-eco applied context green 2 diffusion, it shown that high has ambiguous effects. It accelerates diffusion process initially but comes at cost long-term stability specialization. For firms, easy adopt new technology, also switch back incumbent type. instability can macroeconomically costly.