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Closing the technology gap?

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  • Castellacci, Fulvio

Abstract

This paper focuses on the dimensions shaping the dynamics of technology. We present a model where the knowledge stock of a country grows over time as a function of three main factors: its innovation intensity, its technological infrastructures and its human capital. The latter two variables contribute to determine the absorptive capacity of a country as well as its innovative ability. Based on this theoretical framework, we carry out an empirical analysis that investigates the dynamics of technology in a large sample of developed and developing economies in the last two-decade period, and studies its relationships with the growth of income per capita in a dynamic panel model setting. The results indicate that the cross-country distributions of technological infrastructures and human capital have experienced a process of convergence, whereas the innovative intensity is characterized by increasing polarization between rich and poor economies. Thus, while the conditions for catching up have generally improved, the increasing innovation gap represents a major factor behind the observed differences in income per capita.

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  • Castellacci, Fulvio, 2010. "Closing the technology gap?," MPRA Paper 27586, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:27586
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    References listed on IDEAS

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    Cited by:

    1. Fulvio Castellacci & Bart Los & Gaaitzen Vries, 2014. "Sectoral productivity trends: convergence islands in oceans of non-convergence," Journal of Evolutionary Economics, Springer, vol. 24(5), pages 983-1007, November.
    2. Castellacci, Fulvio & Natera, Jose Miguel, 2013. "The dynamics of national innovation systems: A panel cointegration analysis of the coevolution between innovative capability and absorptive capacity," Research Policy, Elsevier, vol. 42(3), pages 579-594.
    3. Castellacci, Fulvio & Natera, Jose Miguel, 2016. "Innovation, absorptive capacity and growth heterogeneity: Development paths in Latin America 1970–2010," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 27-42.
    4. Rath, Badri Narayan, 2016. "Does the digital divide across countries lead to convergence? New international evidence," Economic Modelling, Elsevier, vol. 58(C), pages 75-82.
    5. Fulvio Castellacci & Jose Miguel Natera, 2015. "The Convergence Paradox: The Global Evolution of National Innovation Systems," Working Papers on Innovation Studies 20150821, Centre for Technology, Innovation and Culture, University of Oslo.
    6. Ewa Lechman, 2012. "Technology convergence and digital divides. A country-level evidence for the period 2000–2010," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 31.
    7. Ewa Lechman, 2013. "Does Technology Adoption Matter For Economic Development? An Empirical Evidence For Latin American Countries," GUT FME Working Paper Series A 17, Faculty of Management and Economics, Gdansk University of Technology.
    8. Ewa, Lechman, 2012. "Cross national technology convergence. An empirical study for the period 2000-2010," MPRA Paper 37442, University Library of Munich, Germany.
    9. Ewa Lechman, 2013. "ICTs diffusion trajectories and economic development – an empirical evidence for 46 developing countries," GUT FME Working Paper Series A 18, Faculty of Management and Economics, Gdansk University of Technology.
    10. Stöllinger, Roman, 2013. "International spillovers in a world of technology clubs," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 19-35.
    11. 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.
    12. repec:spr:jknowl:v:8:y:2017:i:1:d:10.1007_s13132-015-0270-7 is not listed on IDEAS
    13. Andrea Filippetti & Marion Frenz & Grazia Ietto-Gillies, 2013. "The Role Of Internationalization As A Determinant Of Innovation Performance. An Analysis Of 42 Countries," Working Papers 10, Birkbeck Centre for Innovation Management Research, revised Jan 2013.
    14. Frank, Alejandro Germán & Cortimiglia, Marcelo Nogueira & Ribeiro, José Luis Duarte & Oliveira, Lindomar Subtil de, 2016. "The effect of innovation activities on innovation outputs in the Brazilian industry: Market-orientation vs. technology-acquisition strategies," Research Policy, Elsevier, vol. 45(3), pages 577-592.
    15. repec:wsi:ijimxx:v:21:y:2017:i:01:n:s1363919617500360 is not listed on IDEAS
    16. Andrea Filippetti & Antonio Peyrache, 2013. "Is the Convergence Party Over? Labour Productivity and the Technology Gap in Europe," Journal of Common Market Studies, Wiley Blackwell, vol. 51(6), pages 1006-1022, November.
    17. A. Peyrache & Andrea Filippetti, 2012. "Labour productivity and technology gap in European regions: A non-parametric approach," CEPA Working Papers Series WP022012, School of Economics, University of Queensland, Australia.
    18. Mate-Sanchez-Val, Mariluz & Harris, Richard, 2014. "Differential empirical innovation factors for Spain and the UK," Research Policy, Elsevier, vol. 43(2), pages 451-463.
    19. José Arias-Pérez & Carlos Mario Durango Yepes & Nora Teresa Millán López, 2015. "Capacidad de innovación de proceso y desempeño innovador: efecto mediador de la capacidad de innovación de producto," REVISTA AD-MINISTER, UNIVERSIDAD EAFIT, issue 27, pages 75-93, November.
    20. Choung, Jae-Yong & Hwang, Hye-Ran & Song, Wichin, 2014. "Transitions of Innovation Activities in Latecomer Countries: An Exploratory Case Study of South Korea," World Development, Elsevier, vol. 54(C), pages 156-167.
    21. Randolph Bruno & Nauro Campos & Saul Estrin & Meng Tian, 2017. "Economic Integration, Foreign Investment and International Trade: The Effects of Membership of the European Union," CEP Discussion Papers dp1518, Centre for Economic Performance, LSE.
    22. Castellacci, Fulvio & Natera, Jose Miguel, 2011. "A new panel dataset for cross-country analyses of national systems, growth and development (CANA)," MPRA Paper 28376, University Library of Munich, Germany.
    23. Fulvio, Castellacci, 2012. "Business Groups, Innovation and Institutional Voids in Latin America," MPRA Paper 41481, University Library of Munich, Germany.
    24. Annapoornima M. Subramanian & Young Rok Choi & Soo-Hoon Lee & Chang-Chieh Hang, 2016. "Linking technological and educational level diversities to innovation performance," The Journal of Technology Transfer, Springer, vol. 41(2), pages 182-204, April.

    More about this item

    Keywords

    Growth and development; technology gap; absorptive capacity; innovation; polarization; twin-peaks;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • 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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