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Digital technologies, technological improvement rates, and innovations “Made in Switzerland”

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Listed:
  • Matthias Niggli

    (University of Basel)

  • Christian Rutzer

    (University of Basel)

Abstract

Technologies evolve at different paces and their rate of improvement varies considerably. We demonstrate that the fastest technological progress currently occurs in the digital domain and empirically investigate the relationship between technologies’ improvement rates and breakthrough innovations as measured by forward citations of patents. Our empirical estimates suggest that patents from the digital sphere, as well as those related to fast-improving technologies, are associated with a higher probability to produce breakthrough innovations. We then investigate Swiss core industries’ specialization patterns toward these potential high-impact technologies and compare the state of cutting-edge innovation in Switzerland to other countries. Our findings imply that the Swiss innovation system is among the laggards regarding innovations in today’s fastest improving digital technologies.

Suggested Citation

  • Matthias Niggli & Christian Rutzer, 2023. "Digital technologies, technological improvement rates, and innovations “Made in Switzerland”," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 159(1), pages 1-31, December.
    • Handle: RePEc:spr:sjecst:v:159:y:2023:i:1:d:10.1186_s41937-023-00104-z
    DOI: 10.1186/s41937-023-00104-z
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    More about this item

    Keywords

    Technological change; Technological progress; Patents; Digitization;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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