Vertical Integration and Distance to Frontier
构建了一个模型，说明随着经济体接近世界技术前沿，企业的均衡组织形式会发生变化：远离前沿时模仿更重要，企业偏好垂直整合；接近前沿时创新价值上升，企业更倾向外包。
We construct a model where the equilibrium organization of firms changes as an economy approaches the world technology frontier. In vertically integrated firms, owners (managers) have to spend time both on production and innovation activities, and this creates managerial overload, and discourages innovation. Outsourcing of some production activities mitigates the managerial overload, but creates a holdup problem, causing some of the rents of the owners to be dissipated to the supplier. Far from the technology frontier, imitation activities are more important, and vertical integration is preferred. Closer to the frontier, the value of innovation increases, encouraging outsourcing.