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The Effects of Biased Technological Change on Total Factor Productivity. Empirical Evidence from a Sample of OECD Countries

Technological change is far from neutral. The empirical analysis of the rate and direction of technological change in a significant sample of 10 OECD countries in the years 1971-2001 confirms the strong bias of new technologies. The introduction of new and biased technologies affects the actual levels of total factor productivity when it matches the characteristics of local factor markets so that locally abundant inputs become more productive. In turn the matching between the bias of technological change and the relative abundance of production factors can be considered as the result of a path dependent process where the quality of the local knowledge infrastructure plays a central role in shaping the direction.

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Paper provided by University of Turin in its series 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 Carlo Alberto. WP series with number 200806.

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Length: 29 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:uto:labeco:200806
Contact details of provider: Web page: http://www.unito.it/
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