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How to Reap the Induced Technological Bonus? A Mechanism and Illustrative Implementation

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  • Das, Gouranga

Abstract

Exogenous technical progress can have uneven impacts on productivity contingent on absorptive capacity, structural congruence and trade intensity. The paper illustrates the role of enabling behind-the-border factors for effective absorption and is pertinent for discussing issues like ‘Europe 2020’or Lisbon strategy for inclusive growth. Drawing on our model, we illustrate that the capture-parameter is the propellant force for effective assimilation of foreign technology of recent vintage. The capture parameter is the outcome of endogenous decision-making process. The ‘productivity bonus’ mechanism leaves room for changing the results via skill-mix composition. However, it awaits implementation in a large-scale economy-wide modeling framework for further extension.

Suggested Citation

  • Das, Gouranga, 2009. "How to Reap the Induced Technological Bonus? A Mechanism and Illustrative Implementation," MPRA Paper 37921, University Library of Munich, Germany, revised 2010.
    • Handle: RePEc:pra:mprapa:37921
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    References listed on IDEAS

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    1. Keller, Wolfgang, 2000. "Do Trade Patterns and Technology Flows Affect Productivity Growth?," The World Bank Economic Review, World Bank, vol. 14(1), pages 17-47, January.
    2. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-149, January.
    3. Hans Meijl & Frank Tongeren, 1998. "Trade, technology spillovers, and food production in China," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(3), pages 423-449, September.
    4. Evenson, Robert E. & Westphal, Larry E., 1995. "Technological change and technology strategy," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 37, pages 2209-2299, Elsevier.
    5. Bernard Hoekman & Beata Smarzynska Javorcik, 2006. "Global Integration and Technology Transfer," World Bank Publications - Books, The World Bank Group, number 6962, December.
    6. Guerrieri, Paolo & Milana, Carlo, 1995. "Changes and Trends in the World Trade in High-Technology Products," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 19(1), pages 225-242, February.
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    Cited by:

    1. Das, Gouranga, 2010. "Globalization, socio-institutional factors and North–South knowledge diffusion: Role of India and China as Southern growth progenitors," MPRA Paper 37252, University Library of Munich, Germany, revised 01 Aug 2011.
    2. Das, Gouranga Gopal, 2015. "Why some countries are slow in acquiring new technologies? A model of trade-led diffusion and absorption," Journal of Policy Modeling, Elsevier, vol. 37(1), pages 65-91.

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    More about this item

    Keywords

    Trade; Technology Spillover; Capture; Productivity; Congruence;
    All these keywords.

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • C0 - Mathematical and Quantitative Methods - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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