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Simulating the prospects of technological catching up

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  • Jose Castro Caldas
  • Manuel Mira Godinho
  • Ricardo Paes Mamede

Abstract

Local increasing returns associated with static and dynamic scale effects, knowledge spillovers, polarization effects and the distance that separates different regions are among the most important driving forces behind the dynamics of economic and technological convergence. This paper puts forward a computational simulation model that seeks to integrate these factors. The modelling exercise was designed in order to achieve a better understanding of the relationship between the aspects underlying the specific trajectories of regional technological accumulation and the aggregate convergence/divergence patterns stemming from these trajectories. In particular, the role of history and geography in the dynamics of technological convergence is emphasized.

Suggested Citation

  • Jose Castro Caldas & Manuel Mira Godinho & Ricardo Paes Mamede, 2009. "Simulating the prospects of technological catching up," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(6), pages 565-586.
  • Handle: RePEc:taf:ecinnt:v:18:y:2009:i:6:p:565-586
    DOI: 10.1080/10438590802233651
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    7. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters,in: Understanding the Process of Economic Change Princeton University Press.
    8. Davies, Stephen W., 1979. "Inter-firm diffusion of process innovations," European Economic Review, Elsevier, vol. 12(4), pages 299-317, October.
    9. Aadne Cappelen & Jan Fagerberg & Bart Verspagen, 1999. "Lack of regional convergence," Working Papers Archives 1999001, Centre for Technology, Innovation and Culture, University of Oslo.
    10. M. V. Posner, 1961. "International Trade And Technical Change," Oxford Economic Papers, Oxford University Press, vol. 13(3), pages 323-341.
    11. Verspagen, Bart & Maurseth, Per Botolf, 1998. "Knowledge Spillovers in Europe and its Consequences for Systems of Innovation," Working Papers 98.1, Eindhoven Center for Innovation Studies.
    12. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
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    Cited by:

    1. José Afonso Mendes & Sandra T. Silva & Ester G. Silva, 2014. "Portuguese economic growth revisited: a technology-gap explanation," FEP Working Papers 545, Universidade do Porto, Faculdade de Economia do Porto.

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