IDEAS home Printed from https://ideas.repec.org/p/uto/dipeco/201805.html
   My bibliography  Save this paper

Directed Technological Change and Technological Congruence: A New Framework for the Smart Specialization Strategy

Author

Listed:

Abstract

Technological congruence implements the analysis of directed technological change showing how the match between the relative size of outputs’ elasticity and the relative abundance and cost of production factors has powerful effects on total factor productivity (TFP). Smart specialization strategies can rely upon technological congruence to support the introduction and diffusion of new directed technologies characterized by the best mix of factors relative cost -as determined by pecuniary externalities in the regional factor markets- and output elasticity. The evidence of 278 European regions in the years 1980-2011 confirms that the levels and the changes in technological congruence, brought about by the introduction of directed technological changes, have significant effects on the levels and the changes of TFP. The key policy implication is that the optimal S3 policy mix should not only look at the history of local industrial or technological specializations, but it should also take into account the pecuniary externalities that characterize local factor markets to promote technological changes directed to augmenting the output elasticity of the cheaper regional production factors.

Suggested Citation

  • Antonelli, Cristiano & Feder, Christophe & Quatraro, Francesco, 2018. "Directed Technological Change and Technological Congruence: A New Framework for the Smart Specialization Strategy," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201805, University of Turin.
    • Handle: RePEc:uto:dipeco:201805
    as

    Download full text from publisher

    File URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2018dip/wp_5_2018.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. J�rgen Essletzbichler, 2015. "Relatedness, Industrial Branching and Technological Cohesion in US Metropolitan Areas," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 752-766, May.
    2. Boschma, Ron & Heimeriks, Gaston & Balland, Pierre-Alexandre, 2014. "Scientific knowledge dynamics and relatedness in biotech cities," Research Policy, Elsevier, vol. 43(1), pages 107-114.
    3. Alan B. Krueger, 1999. "Measuring Labor's Share," American Economic Review, American Economic Association, vol. 89(2), pages 45-51, May.
    4. Ron Boschma, 2011. "Regional Branching and Regional Innovation Policy," Advances in Spatial Science, in: Karima Kourtit & Peter Nijkamp & Roger R. Stough (ed.), Drivers of Innovation, Entrepreneurship and Regional Dynamics, pages 359-368, Springer.
    5. Ron Boschma, 2017. "Relatedness as driver of regional diversification: a research agenda," Regional Studies, Taylor & Francis Journals, vol. 51(3), pages 351-364, March.
    6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    7. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(2), pages 385-406, June.
    8. Hernando Zuleta, 2008. "Factor Saving Innovations and Factor Income Shares," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 836-851, October.
    9. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    10. Ron Boschma, 2014. "Constructing Regional Advantage and Smart Specialisation: Comparison of Two European Policy Concepts," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2014(1), pages 51-68.
    11. Bjørn Asheim & Ron Boschma & Philip Cooke, 2011. "Constructing Regional Advantage: Platform Policies Based on Related Variety and Differentiated Knowledge Bases," Regional Studies, Taylor & Francis Journals, vol. 45(7), pages 893-904.
    12. Cristiano Antonelli & Francesco Quatraro, 2010. "The effects of biased technological change on total factor productivity: empirical evidence from a sample of OECD countries," The Journal of Technology Transfer, Springer, vol. 35(4), pages 361-383, August.
    13. 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.
    14. Ron Boschma & Asier Minondo & Mikel Navarro, 2013. "The Emergence of New Industries at the Regional Level in S pain: A Proximity Approach Based on Product Relatedness," Economic Geography, Clark University, vol. 89(1), pages 29-51, January.
    15. Frank Neffke & Matté Hartog & Ron Boschma & Martin Henning, 2018. "Agents of Structural Change: The Role of Firms and Entrepreneurs in Regional Diversification," Economic Geography, Taylor & Francis Journals, vol. 94(1), pages 23-48, January.
    16. Daron Acemoglu, 2002. "Directed Technical Change," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 781-809.
    17. Francesco Caselli & James Feyrer, 2007. "The Marginal Product of Capital," The Quarterly Journal of Economics, Oxford University Press, vol. 122(2), pages 535-568.
    18. Daron Acemoglu, 2010. "When Does Labor Scarcity Encourage Innovation?," Journal of Political Economy, University of Chicago Press, vol. 118(6), pages 1037-1078.
    19. Cristiano Antonelli & Francesco Quatraro, 2013. "Localized Technological Change and Efficiency Wages across European Regional Labour Markets," Regional Studies, Taylor & Francis Journals, vol. 47(10), pages 1686-1700, November.
    20. Daron Acemoglu & Melissa Dell, 2010. "Productivity Differences between and within Countries," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 169-188, January.
    21. Andersson, Martin & Johansson, Borje & Karlsson, Charlie & Loof, Hans (ed.), 2012. "Innovation and Growth: From R&D Strategies of Innovating Firms to Economy-wide Technological Change," OUP Catalogue, Oxford University Press, number 9780199646685, November.
    22. 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, Oxford University Press, vol. 114(1), pages 83-116.
    23. Pierre-Alexandre Balland & Ron Boschma & Joan Crespo & David L. Rigby, 2019. "Smart specialization policy in the European Union: relatedness, knowledge complexity and regional diversification," Regional Studies, Taylor & Francis Journals, vol. 53(9), pages 1252-1268, September.
    24. Feder, Christophe, 2018. "The effects of disruptive innovations on productivity," Technological Forecasting and Social Change, Elsevier, vol. 126(C), pages 186-193.
    25. Antonelli, Cristiano, 2016. "Technological congruence and the economic complexity of technological change," Structural Change and Economic Dynamics, Elsevier, vol. 38(C), pages 15-24.
    26. Brad Sturgill & Hernando Zuleta, 2016. "Variable Factor Shares and the Index Number Problem: A Generalization," Documentos CEDE 015038, Universidad de los Andes – Facultad de Economía – CEDE.
    27. Daron Acemoglu, 2003. "Labor- And Capital-Augmenting Technical Change," Journal of the European Economic Association, MIT Press, vol. 1(1), pages 1-37, March.
    28. Francesco Caselli & Wilbur John Coleman II, 2006. "The World Technology Frontier," American Economic Review, American Economic Association, vol. 96(3), pages 499-522, June.
    29. Philip McCann & Raquel Ortega-Argil�s, 2015. "Smart Specialization, Regional Growth and Applications to European Union Cohesion Policy," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1291-1302, August.
    30. Cristiano Antonelli & Francesco Quatraro, 2014. "The effects of biased technological changes on total factor productivity: a rejoinder and new empirical evidence," The Journal of Technology Transfer, Springer, vol. 39(2), pages 281-299, April.
    31. Francesco Quatraro, 2009. "Diffusion of Regional Innovation Capabilities: Evidence from Italian Patent Data," Regional Studies, Taylor & Francis Journals, vol. 43(10), pages 1333-1348, December.
    32. Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2012. "The emergence of new technology-based sectors at the regional level: a proximity-based analysis of nanotechnology," Papers in Evolutionary Economic Geography (PEEG) 1211, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2012.
    33. Oliver J. Blanchard, 1997. "The Medium Run," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(2), pages 89-158.
    34. Ron Boschma & Carlo Gianelle, 2014. "Regional Branching and Smart Specialisation Policy," JRC Research Reports JRC88242, Joint Research Centre (Seville site).
    35. Cristiano Antonelli & Federico Barbiellini Amidei & Christophe Feder, 2017. "Directed technological change and productivity growth: the Italian evidence 1861-2010," International Journal of Computational Economics and Econometrics, Inderscience Enterprises Ltd, vol. 7(3), pages 238-255.
    36. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    37. Philippe Aghion & Julian Boulanger & Elie Cohen, 2011. "Rethinking industrial policy," Policy Briefs 566, Bruegel.
    38. Sandro Montresor & Francesco Quatraro, 2017. "Regional Branching and Key Enabling Technologies: Evidence from European Patent Data," Economic Geography, Taylor & Francis Journals, vol. 93(4), pages 367-396, August.
    39. Alan Krueger, 1999. "Measuring Labor's Share," Working Papers 792, Princeton University, Department of Economics, Industrial Relations Section..
    40. Oughton, Christine & Landabaso, Mikel & Morgan, Kevin, 2002. "The Regional Innovation Paradox: Innovation Policy and Industrial Policy," The Journal of Technology Transfer, Springer, vol. 27(1), pages 97-110, January.
    41. Zuleta, Hernando, 2012. "Variable factor shares, measurement and growth accounting," Economics Letters, Elsevier, vol. 114(1), pages 91-93.
    42. repec:fth:prinin:413 is not listed on IDEAS
    43. Christophe Feder, 2018. "A measure of total factor productivity with biased technological change," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(3), pages 243-253, April.
    44. Karima Kourtit & Peter Nijkamp & Roger R. Stough (ed.), 2011. "Drivers of Innovation, Entrepreneurship and Regional Dynamics," Advances in Spatial Science, Springer, number 978-3-642-17940-2, December.
    45. Ruttan, Vernon W, 1997. "Induced Innovation, Evolutionary Theory and Path Dependence:," Economic Journal, Royal Economic Society, vol. 107(444), pages 1520-1529, September.
    46. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antonelli,Cristiano, 2013. "The economics of technological congruence," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201304, University of Turin.
    2. Antonelli, Cristiano, 2016. "Technological congruence and the economic complexity of technological change," Structural Change and Economic Dynamics, Elsevier, vol. 38(C), pages 15-24.
    3. Christophe Feder, 2018. "Smart Specialization Strategy and Directed Technological Change," Economics Bulletin, AccessEcon, vol. 38(3), pages 1428-1437.
    4. Ron Boschma, 2021. "Designing Smart Specialization Policy: relatedness, unrelatedness, or what?," Papers in Evolutionary Economic Geography (PEEG) 2128, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    5. Francesco Quatraro & Alessandra Scandura, 2020. "Regional patterns of unrelated technological diversification: the role of academic inventors," Carlo Alberto Notebooks 603, Collegio Carlo Alberto.
    6. Montresor, Sandro & Francesco, Quatraro, 2015. "Do Key Enabling Technologies shape regional Smart Specialization Strategies? A patent based analysis of European data," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201517, University of Turin.
    7. Cristiano Antonelli & Francesco Quatraro, 2014. "The effects of biased technological changes on total factor productivity: a rejoinder and new empirical evidence," The Journal of Technology Transfer, Springer, vol. 39(2), pages 281-299, April.
    8. Quatraro, Francesco & Scandura, Alessandra, 2020. "Regional patterns of unrelated technological diversification: the role of academic inventors," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202001, University of Turin.
    9. Sandro Montresor & Francesco Quatraro, 2015. "Smart Specialization Strategies and Key Enabling Technologies. Regional evidence from European patent data," Papers in Evolutionary Economic Geography (PEEG) 1525, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2015.
    10. Jason Deegan & Tom Broekel & Rune Dahl Fitjar, 2021. "Searching through the Haystack:The Relatedness and Complexity of Priorities in Smart Specialization Strategies," Economic Geography, Taylor & Francis Journals, vol. 97(5), pages 497-520, October.
    11. Dawson, John W. & Sturgill, Brad, 2022. "Market Institutions and Factor Shares Across Countries," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 266-289.
    12. Pierre-Alexandre Balland & Ron Boschma & Joan Crespo & David L. Rigby, 2017. "Smart Specialization policy in the EU: Relatedness, Knowledge Complexity and Regional Diversification," Papers in Evolutionary Economic Geography (PEEG) 1717, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2017.
    13. Antonelli Cristiano & Fassio Claudio, 2011. "Globalization and innovation in advanced economies," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201108, University of Turin.
    14. Ron Boschma, 2018. "The geographical dimension of structural change," Papers in Evolutionary Economic Geography (PEEG) 1839, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2018.
    15. Ron Boschma, 2014. "Constructing Regional Advantage and Smart Specialisation: Comparison of Two European Policy Concepts," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2014(1), pages 51-68.
    16. Cristiano Antonelli & Giuseppe Scellato, 2015. "Firms size and directed technological change," Small Business Economics, Springer, vol. 44(1), pages 207-218, January.
    17. Adam Whittle & Balázs Lengyel & Dieter F. Kogler, 2020. "Understanding Regional Branching Knowledge Diversification via Inventor Collaboration Networks," Papers in Evolutionary Economic Geography (PEEG) 2006, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2020.
    18. Cristiano Antonelli & Christophe Feder, 2020. "Total factor productivity, catch-up and technological congruence in Italy, 1861–2010," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 1171-1194, September.
    19. Cristiano Antonelli & Christophe Feder, 2021. "Knowledge appropriability and directed technological change: the Schumpeterian creative response in global markets," The Journal of Technology Transfer, Springer, vol. 46(3), pages 686-700, June.
    20. Moreno, Rosina & Ocampo-Corrales, Diego, 2022. "The ability of European regions to diversify in renewable energies: The role of technological relatedness," Research Policy, Elsevier, vol. 51(5).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uto:dipeco:201805. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/detorit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Piero Cavaleri or Marina Grazioli (email available below). General contact details of provider: https://edirc.repec.org/data/detorit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.