Structure of Knowledge and the Role of General Capital

Modern economies, characterized by their complex output of goods and services, operate through interconnected networks of specialist actors. Therefore, economic growth relies on specialization and division of work among these economic agents. Existing theories have presumed specialization entails deepening unique expertise and developing niche capabilities, thereby, a growing differentiation between what specialists of different domains know. This dissertation uses various data sources to examine specialization patterns and the resulting knowledge structures in two settings: i. workers and their workplace skills, and ii. firms and their technological knowledge. Numerous analyses reveal robust evidence that developing niche skills is just the tip of the specialization iceberg. Instead, becoming a successful worker or firm requires a tantamount advancement of general and niche capabilities, with a significant amount of effort towards developing the former. This dissertation offers a framework that explains how general capabilities, like i. social skills or ii. artificial intelligence, offer unique advantages, and act as gatekeepers of valuable specialization. These findings' micro- and macro-level implications contribute to long-standing debates in management, economics, and sociology on the role of general versus niche resources and the long-term effects of specialization on stable economic growth.