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Structural change and domestic technological capabilities

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  • Katz, Jorge

Abstract

This paper examines the role of structural change as a source of economic growth and institutional and technological change. With the creation of new activities in the economy, significant changes occur in institutions and in the way domestic production capabilities are organized, which alters the ultimate sources of growth in society. This is a complex process that involves ubiquitous externalities and new forms of clustering and direct interdependence between economic agents that the language of modern growth theory cannot fully capture. Neoclassical growth models construe economic growth in terms of an institution-free equilibrium algorithm that affords insufficient consideration to macro-to-micro interactions, changes in the structure of production, the co-evolution of economic, institutional and technological forces and the process of creation and destruction of production organization capabilities that obtains in the economy during the growth process. This paper argues that precisely these macro-to-micro interactions and the creation of new institutions and capabilities constitute the essence of development.

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  • Katz, Jorge, 2006. "Structural change and domestic technological capabilities," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    • Handle: RePEc:ecr:col070:11159
    Note: Includes bibliography
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    File URL: http://repositorio.cepal.org/handle/11362/11159
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    1. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
    2. Jorge Katz, 2002. "Efficiency And Equity Aspects Of The," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 423-439.
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    1. Gabriela Dutrénit & Juan Carlos Moreno-Brid & Martín Puchet & Eduardo Moreno, 2014. "Economic growth, innovation and inequality in Latin America: improvements, setbacks and pending issues post-Washington Consensus," Chapters, in: Gabriela Dutrénit & Judith Sutz (ed.), National Innovation Systems, Social Inclusion and Development, chapter 11, pages 304-348, Edward Elgar Publishing.
    2. Slavo Radosevic, 2009. "Policies for Promoting Technological Catch Up: Towards a Post-Washington Approach," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 1(1), pages 23-52, June.
    3. Crespi G.A. & Tacsir E. & Vargas F., 2014. "Innovation dynamics and productivity : evidence for Latin America," MERIT Working Papers 2014-092, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Rachman, M. Aulia, 2023. "Scholarship for catching up? The Indonesia Endowment Fund for Education (LPDP) scholarship program as a pillar of economic development policy," International Journal of Educational Development, Elsevier, vol. 96(C).

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