During the past two centuries, major technological breakthroughs such as the steam engine and electricity have acted as the catalysts for growth and have resulted in a marked increase in material well-being. The dominant modern technology - information and communication technology (ICT) - does not seem to drive growth as effectively and has coincided with an apparent increase in wage inequality. This book provides explanations of these two characteristics of modern economies and analyses them from both an individual and integrated perspective INDICE Part 1 Introduction: knowledge and economic growth - general introduction and outline on technology, trade and wage inequality - a survey. Part 2 Theory: a GPT in a research and assimilation model - exploring wage dynamics (I) we don't see what we learn - the Solow residual, a GPT and inquality vested interests and resistance - adopting a general purpose technology the skill premium and appropriability - exploring wage dynamics (II) specific technology, variety, spillovers and welfare. Part 3 Empirical applications: economic development and trade in the world economy - introducing WorldScan openness, growth and R&D spillovers - an R&D-amended version of WorldScan