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Heterogenous skills, growth and convergence

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  • Dohse, Dirk
  • Ott, Ingrid

Abstract

This paper analyzes the impact of different individual skills and their economy-wide distribution among heterogenous entrepreneurs on a country's catching up-process to the world technology frontier (WTF). Highly skilled entrepreneurs qualify as either technological specialists or as broadly skilled systemic entrepreneurs. Governmental policy may address individual skills or the aggregate composition of skills in society and may be interpreted as education policy. The effectiveness of alternative growth-promoting policies is shown to depend on the relationship between a country's state of development and the prevailing composition of entrepreneurs. Countries far from the WTF benefit from increasing the share of technological specialists, whereas countries close to the WTF benefit from increasing the share of broadly skilled systemic entrepreneurs.

Suggested Citation

  • Dohse, Dirk & Ott, Ingrid, 2014. "Heterogenous skills, growth and convergence," Structural Change and Economic Dynamics, Elsevier, vol. 30(C), pages 52-67.
    • Handle: RePEc:eee:streco:v:30:y:2014:i:c:p:52-67
    DOI: 10.1016/j.strueco.2014.01.003
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    Cited by:

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    2. Dirk Dohse & Robert Gold, 2014. "Determining the Impact of Cultural Diversity on Regional Economies in Europe. WWWforEurope Working Paper No. 58," WIFO Studies, WIFO, number 47204.

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    More about this item

    Keywords

    Heterogenous skills; Schumpeterian growth; Catching up; Education policies; Systemic capacity;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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