Globalization Localized Technological Change and the Knowledge Economy
This work elaborates a dynamic version of the H-O model based upon the hypothesis that technological change is endogenous and biased towards the most intensive use of production factors that are locally most abundant in comparative terms. In the standard H-O model, the difference in the levels of the output elasticity of inputs is assumed to be exogenous. In this dynamic version, instead, this difference is fully endogenous. This approach rests upon the localized technological change approach that integrates the advances of the new economic of knowledge with the Schumpeterian notion of creative reaction, the analysis of induced technological change and technological congruence. According to the Schumpeterian notion of innovation as the result of the creative reaction, firms caught in out-of-equilibrium conditions by the changing conditions of both factor and product markets might try and react by means of the introduction of biased technological changes directed towards the most intensive use of inputs that are locally most abundant in relative terms. Their success and hence the actual introduction of technological innovations will depend upon the availability of appropriate knowledge externalities. According to this framework, countries exposed the out-of-equilibrium conditions engendered by the globalization of product markets can react with the successful introduction of innovations aimed at increasing the intensity of capital -the most abundant input- with the increase of its output elasticity. For the same token they can contrast the twin globalization of capital and product markets with the introduction of the technology production function that makes intensive use of technological knowledge as the most abundant input. Technological knowledge in fact is characterized by its strong collective and systemic character that limits its dissemination and use outside its context of origin.
|Date of creation:||May 2013|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.unito.it/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Long, N.V. & Wong, K.Y., 1996.
"Endogenous Growth and International Trade: A Survey,"
Discussion Papers in Economics at the University of Washington
96-07, Department of Economics at the University of Washington.
- Long, Ngo Van & Wong, Kar-Yiu, 1997. "Endogenous growth and international trade: A survey," Discussion Papers, Series II 337, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
- Long, N.V. & Wong, K.Y., 1996. "Endogenous Growth and International Trade: A Survey," Working Papers 96-07, University of Washington, Department of Economics.
- Daron Acemoglu, 2002.
"Directed Technical Change,"
Review of Economic Studies,
Oxford University Press, vol. 69(4), pages 781-809.
- Stefano Breschi & Francesco Lissoni, 2001.
"Knowledge spillovers and local innovation systems: a critical survey,"
LIUC Papers in Economics
84, Cattaneo University (LIUC).
- Breschi, Stefano & Lissoni, Francesco, 2001. "Knowledge Spillovers and Local Innovation Systems: A Critical Survey," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 975-1005, December.
- Breschi, Stefano & Lissoni, Francesco, 2000. "Knowledge Spillovers And Local Innovation Systems: A Critical Survey," ERSA conference papers ersa00p362, European Regional Science Association.
- Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June.
- Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
- Weitzman, Martin L, 1996. "Hybridizing Growth Theory," American Economic Review, American Economic Association, vol. 86(2), pages 207-12, May.
- Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
- Jonathan Eaton & Samuel Kortum, 2001.
"Trade in Capital Goods,"
NBER Working Papers
8070, National Bureau of Economic Research, Inc.
- Jonathan Eaton & Samuel Kortum, 2004. "Trade in Capital Goods," Levine's Working Paper Archive 228400000000000019, David K. Levine.
- Jonathan Eaton & Samuel Kortum, 2000. "Trade in Capital Goods," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-109, Boston University - Department of Economics.
- Jackie Krafft & Francesco Quatraro & Pier-Paolo Saviotti, 2011.
"The Knowledge Base Evolution in Biotechnology: A Social Network Analysis,"
- Jackie Krafft & Francesco Quatraro & Pier Paolo Saviotti, 2011. "The knowledge-base evolution in biotechnology: a social network analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(5), pages 445-475.
- Jackie Krafft & Francesco Quatraro & Pier-Paolo Saviotti, 2011. "The knowledge-base evolution in biotechnology: a social network analysis," Post-Print halshs-00727610, HAL.
- Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62, pages 143.
- Weitzman, Martin L., 1998.
3708468, Harvard University Department of Economics.
- Martin L. Weitzman, 1995. "Recombinant Growth," Harvard Institute of Economic Research Working Papers 1722, Harvard - Institute of Economic Research.
- Daron Acemoglu & Fabrizio Zilibotti, 2001.
The Quarterly Journal of Economics,
Oxford University Press, vol. 116(2), pages 563-606.
- Acemoglu, Daron & Zilibotti, Fabrizio, 1998. "Productivity Differences," Seminar Papers 660, Stockholm University, Institute for International Economic Studies.
- Daron Acemoglu & Fabrizio Zilbotti, 1999. "Productivity Differences," NBER Working Papers 6879, National Bureau of Economic Research, Inc.
- Acemoglu, D. & Zilibotti, F., 1998. "Productivity Differences," Papers 660, Stockholm - International Economic Studies.
- Acemoglu, Daron & Zilibotti, Fabrizio, 2000. "Productivity Differences," CEPR Discussion Papers 2498, C.E.P.R. Discussion Papers.
- Polder, Michael & Leeuwen, George van & Mohnen, Pierre & Raymond, Wladimir, 2009. "Productivity effects of innovation modes," MPRA Paper 18893, University Library of Munich, Germany.
- Griliches, Zvi, 1992.
" The Search for R&D Spillovers,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 94(0), pages S29-47, Supplemen.
- Zeira, Joseph, 1995.
"Workers, Machines and Economic Growth,"
CEPR Discussion Papers
1139, C.E.P.R. Discussion Papers.
- Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
- Zvi Griliches, 1998.
"Issues in Assessing the Contribution of Research and Development to Productivity Growth,"
in: R&D and Productivity: The Econometric Evidence, pages 17-45
National Bureau of Economic Research, Inc.
- Zvi Griliches, 1979. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 92-116, Spring.
- Richard R. Nelson, 1982. "The Role of Knowledge in R&D Efficiency," The Quarterly Journal of Economics, Oxford University Press, vol. 97(3), pages 453-470.
- Carol A. Corrado & Charles R. Hulten & Daniel E. Sichel, 2006.
"Intangible Capital and Economic Growth,"
NBER Working Papers
11948, National Bureau of Economic Research, Inc.
- Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67, pages 297.
- Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August.
- Schumpeter, Joseph A., 1947. "The Creative Response in Economic History," The Journal of Economic History, Cambridge University Press, vol. 7(02), pages 149-159, November.
When requesting a correction, please mention this item's handle: RePEc:uto:labeco:201312. 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: (Piero Cavaleri)or (Marina Grazioli)
If references are entirely missing, you can add them using this form.