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The Effects of Biased Technological Change on Total Factor Productivity. Empirical Evidence from a Sample of OECD Countries

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Author Info

  • Cristiano Antonelli

    (Department of Economics, University of Turin - University of Turin)

  • Francesco Quatraro

    ()
    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université de Nice Sophia Antipolis (UNS))

Abstract

Technological change is far from neutral. The empirical analysis of the rate and direction of technological change in a significant sample of 12 major OECD countries in the years 1970-2003 confirms the strong bias of new technologies. The paper implements a novel methodology to identify and disentangle the effects of the direction of technological change upon total factor productivity (TFP) and shows how the introduction of new and biased technologies affects the actual levels of TFP according to the relative local endowments. The empirical evidence confirms that the introduction of biased technologies enhances TFP when its direction matches the characteristics of local factor markets so that locally abundant inputs become more productive. When the direction of technological change favours the intensive use of production factors that are locally scarce, the actual increase of TFP is reduced.

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Bibliographic Info

Paper provided by HAL in its series Post-Print with number halshs-00727618.

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Date of creation: 2010
Date of revision:
Publication status: Published, Journal of Technology Transfer, 2010, 35, 361-383
Handle: RePEc:hal:journl:halshs-00727618

Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00727618
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Related research

Keywords: Total factor productivity; Biased technological change; International technology transfer;

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References

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Citations

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Cited by:
  1. Cristiano Antonelli & Alessandra Colombelli, 2011. "The generation and exploitation of technological change: market value and total factor productivity," The Journal of Technology Transfer, Springer, vol. 36(4), pages 353-382, August.
  2. Valeria Costantini & Francesco Crespi, 2013. "Public policies for a sustainable energy sector: regulation, diversity and fostering of innovation," Journal of Evolutionary Economics, Springer, vol. 23(2), pages 401-429, April.
  3. James Bessen, 2008. "Accounting for Productivity Growth When Technical Change is Biased," Working Papers 0802, Research on Innovation.
  4. Cristiano Antonelli & Francesco Quatraro, 2014. "The Effects of Biased Technological Changes on Total Factor Productivity: A Rejoinder and New Empirical Evidence," GREDEG Working Papers 2014-01, Groupe de REcherche en Droit, Économie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.

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