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Adoption Technology Targets and Knowledge Dynamics: Consequences for Long-Run Prospects

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  • Verónica Mies

Abstract

When targeting frontier technologies, less developed economies usually face obstacles to achieve high growth in the long run, because of their low level of knowledge relative to the adoption technology target. If the intensity in which the adoption activity uses knowledge is high, then the less developed economy may end up trapped in a low growth equilibrium. We show that in this case it is beneficial to target less advanced technologies, which helps to compensate the scarcity of knowledge during the transition. Nevertheless, polarization is possible. If knowledge intensity in the adoption activity is low, then possessing a low stock of knowledge allows targeting the technology frontier even in a poor R&D environment. In this case, all economies achieve a high growth equilibrium in which only income level differences persist in the long run.

Suggested Citation

  • Verónica Mies, 2010. "Adoption Technology Targets and Knowledge Dynamics: Consequences for Long-Run Prospects," Documentos de Trabajo 385, Instituto de Economia. Pontificia Universidad Católica de Chile..
  • Handle: RePEc:ioe:doctra:385
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    File URL: http://www.economia.uc.cl/docs/dt_385.pdf
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    More about this item

    Keywords

    R&D; adoption; innovation; growth; development; transitional dynamics;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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