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Localized Technological Change and Factor Markets: Constraints and Inducements to Innovation

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The recent advances in the economics of innovation and the analysis of how composition effects influence the introduction of technological change in a global economy, characterized by the variety of production functions in use and different local factor markets, provide new strength to the induced innovation approach. Developing the localized technological change approach, it is argued that because there are irreversibilities, limited knowledge and local learning, the introduction of new technologies is induced by the disequilibrium conditions brought about in each system by all changes in relative factor prices. The direction of technological change in terms of its specific form of bias and how it is introduced and adopted, however, reflects the specific conditions of local factor markets. Well-defined long-term technological paths emerge in each region and they depend on the selection process in product markets. The more rigid and idiosyncratic, the endowment of production factors and the system of relative prices are, the more specific the technological path of each region is likely to be. The divide between the microeconomic and the macroreconomic models of induced technological change is reconciled.

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  • Antonelli, Cristiano, 2005. "Localized Technological Change and Factor Markets: Constraints and Inducements to Innovation," 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 200503, University of Turin.
  • Handle: RePEc:uto:labeco:200503
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    1. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
    2. C. Antonelli, 2007. "Localized Technological Change," Chapters,in: Elgar Companion to Neo-Schumpeterian Economics, chapter 16 Edward Elgar Publishing.
    3. Antonelli, Cristiano, 1989. "A failure-inducement model of research and development expenditure : Italian evidence from the early 1980s," Journal of Economic Behavior & Organization, Elsevier, vol. 12(2), pages 159-180, October.
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    6. Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1055-1089.
    7. Broadberry,Steve N., 2005. "The Productivity Race," Cambridge Books, Cambridge University Press, number 9780521023580, August.
    8. Antonelli, Cristiano, 2001. "The Microeconomics of Technological Systems," OUP Catalogue, Oxford University Press, number 9780199245536.
    9. Daron Acemoglu, 2002. "Directed Technical Change," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 781-809.
    10. Freeman, Chris, 1994. "The Economics of Technical Change," Cambridge Journal of Economics, Oxford University Press, vol. 18(5), pages 463-514, October.
    11. Atkinson, Anthony B & Stiglitz, Joseph E, 1969. "A New View of Technological Change," Economic Journal, Royal Economic Society, vol. 79(315), pages 573-578, September.
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    Cited by:

    1. Ulf Richter, 2010. "Liberal Thought in Reasoning on CSR," Journal of Business Ethics, Springer, vol. 97(4), pages 625-649, December.
    2. Feder, Christof, 2014. "Biased Technological Change: A contribution to the debate," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201404, University of Turin.
    3. Antonelli, Cristiano, 2008. "Pecuniary Externalities: the Convergence of Directed Technological Change and the Emergence of Innovation Systems," 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 200807, University of Turin.
    4. Cristiano Antonelli & Giuseppe Scellato, 2015. "Firms size and directed technological change," Small Business Economics, Springer, vol. 44(1), pages 207-218, January.
    5. repec:eee:eneeco:v:69:y:2018:i:c:p:111-127 is not listed on IDEAS
    6. Antonelli, Cristiano, 2007. "Localized Appropriability: Pecuniary Externalities in Knowledge Exploitation," 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 200710, University of Turin.
    7. Jaime Sobrino, 2014. "Urban competitiveness and industrial clusters in Mexico," Chapters,in: Urban Competitiveness and Innovation, chapter 15, pages 252-274 Edward Elgar Publishing.
    8. Pengfei Ni & Zheng Qiongjie (ed.), 2014. "Urban Competitiveness and Innovation," Books, Edward Elgar Publishing, number 15020, December.
    9. 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.
    10. Antonelli, Cristiano, 2016. "Technological congruence and the economic complexity of technological change," Structural Change and Economic Dynamics, Elsevier, vol. 38(C), pages 15-24.
    11. Kounetas, Kostas & Zervopoulos, Panagiotis, 2017. "Annex I and non-Annex I countries’productive performance revisited using a generalized directional distance function under a metafrontier framework: Is there any convergence-divergence pattern for tec," MPRA Paper 80904, University Library of Munich, Germany.
    12. repec:wfo:wstudy:47444 is not listed on IDEAS
    13. repec:ebl:ecbull:eb-18-00523 is not listed on IDEAS
    14. Davide Consoli & Francesco Vona & Toni Saarivirta, 2013. "Analysis of the Graduate Labour Market in Finland: Spatial Agglomeration and Skill--Job Match," Regional Studies, Taylor & Francis Journals, vol. 47(10), pages 1634-1652, November.
    15. Kebede, Kassahun Y. & Mitsufuji, Toshio, 2017. "Technological innovation system building for diffusion of renewable energy technology: A case of solar PV systems in Ethiopia," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 242-253.
    16. repec:wfo:wstudy:58911 is not listed on IDEAS
    17. Antonelli, Cristiano & Scellato, Giuseppe, 2009. "The Localized Introduction Of Biased Technological Change And Productivity Growth. The Empirical Evidence In The Italian Manufacturing Industry," 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 200908, University of Turin.
    18. 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.
    19. 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.
    20. Yongbao Ji & Yanping Wang, 2014. "Some comments on Antonelli and Quatraro’s paper of measuring effect of biased technology on TFP," The Journal of Technology Transfer, Springer, vol. 39(2), pages 276-280, April.
    21. Antonelli, Cristiano & Quatraro, Francesco, 2009. "Localized Technological Change and Efficiency Wages: the Evidence across European Regions," 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 200907, University of Turin.
    22. Feder, Christophe & Kataishi, Rodrigo Ezequiel, 2017. "Decentralization in Heterogeneous Regions: A Biased Technological Change Approach," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201703, University of Turin.
    23. repec:eee:tefoso:v:126:y:2018:i:c:p:186-193 is not listed on IDEAS
    24. Aimei Hong & Changchun Cheng, 2016. "The study on affecting factors of regional marine industrial structure upgrading," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 7(2), pages 213-219, June.
    25. Antonelli, Cristiano & Quatraro, Francesco, 2007. "Directed Technological Change and Total Factor Productivity. Effects and Determinants in a Sample of OECD Countries, 1971 – 2001," 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 200711, University of Turin.

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