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The economics of technological congruence

Technological congruence is defined by the matching between the relative size of outputs’ elasticity with the relative abundance and cost of inputs in local factor markets. With given total costs, output is larger the larger is the output elasticity of the cheapest input. Technological congruence is a powerful tool that helps grasping many controversial aspects of growth accounting, international division of labor and specialization, technological and structural change. For years, it had received little attention because of the wide consensus that technological change was exogenous and neutral. But also subsequently, notwithstanding the developments made in the endogenous growth modeling, little attempt was made to provide a more advanced understanding of technological congruence. Its appreciation stems directly from the advances of the economics of innovation an d its recent developments in understanding the endogenous determinants of the in troduction and diffusion of directed technological changes. The levels of technological congruence are most relevant to influence the actual efficiency and to shape the competitive advance of firms and countries

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Paper provided by University of Turin in its series Department of Economics and Statistics Cognetti de Martiis. Working Papers with number 201306.

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Length: 13 pages
Date of creation: Feb 2013
Date of revision:
Handle: RePEc:uto:dipeco:201306
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  1. Antonelli, Cristiano, 2006. "Localized technological change and factor markets: constraints and inducements to innovation," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 224-247, June.
  2. Francesco Crespi & Cristiano Antonelli, 2011. "Matthew effects and R&D subsidies: knowledge cumulability in high-tech and low-tech industries," Departmental Working Papers of Economics - University 'Roma Tre' 0140, Department of Economics - University Roma Tre.
  3. Pierre Mohnen & Lars-Hendrik Röller, 2000. "Complementarities in Innovation Policy," CIG Working Papers FS IV 00-18, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  4. Daron Acemoglu, 2001. "Directed Technical Change," NBER Working Papers 8287, National Bureau of Economic Research, Inc.
  5. Alan Krueger, 1999. "Measuring Labor's Share," NBER Working Papers 7006, National Bureau of Economic Research, Inc.
  6. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  7. Comin, D. & Hobijn, B., 2004. "Cross-country technology adoption: making the theories face the facts," Journal of Monetary Economics, Elsevier, vol. 51(1), pages 39-83, January.
  8. Francesco Caselli & James Feyrer, 2006. "The Marginal Product of Capital," CEP Discussion Papers dp0735, Centre for Economic Performance, LSE.
  9. Cristiano Antonelli & Francesco Quatraro, 2010. "The Effects of Biased Technological Change on Total Factor Productivity. Empirical Evidence from a Sample of OECD Countries," Post-Print halshs-00727618, HAL.
  10. Zuleta, Hernando, 2012. "Variable factor shares, measurement and growth accounting," Economics Letters, Elsevier, vol. 114(1), pages 91-93.
  11. Agnieszka Gehringer, 2011. "Pecuniary knowledge externalities and innovation: intersectoral linkages and their effects beyond technological spillovers," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(5), pages 495-515.
  12. Maryann Feldman, 1999. "The New Economics Of Innovation, Spillovers And Agglomeration: Areview Of Empirical Studies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 5-25.
  13. Jerzmanowski, Michal, 2007. "Total factor productivity differences: Appropriate technology vs. efficiency," European Economic Review, Elsevier, vol. 51(8), pages 2080-2110, November.
  14. Daron Acemoglu, 2000. "Labor- and Capital- Augmenting Technical Change," NBER Working Papers 7544, National Bureau of Economic Research, Inc.
  15. Franco Malerba, 2005. "Sectoral systems of innovation: a framework for linking innovation to the knowledge base, structure and dynamics of sectors," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(1-2), pages 63-82.
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