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Studying general purpose technologies in a multi-sector framework: The case of ICT in Denmark

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  • Strohmaier, R.
  • Rainer, A.

Abstract

General purpose technologies (GPTs) are technical breakthroughs that are able to spur and sustain growth via their pervasive use in the economy. This paper attempts to study the effects of these innovations for the economic system on a theoretical and empirical level. First, an input–output approach is combined with the replicator dynamics of evolutionary game theory, in order to give a rationale how the adoption of an innovation at the firm level leads to a changing production mode at the industry level. Subsequently, a structural decomposition analysis for Denmark from 1966 to 2007 tracks the impact of the current GPT, the information and communication technologies (ICT), on aggregate and sectoral labor productivity growth. Findings show that the broad diffusion of ICT affected growth significantly only after 2000, owing to technical change, substitution and capital deepening, and can be associated with skill-induced wage dispersion.

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  • Strohmaier, R. & Rainer, A., 2016. "Studying general purpose technologies in a multi-sector framework: The case of ICT in Denmark," Structural Change and Economic Dynamics, Elsevier, vol. 36(C), pages 34-49.
    • Handle: RePEc:eee:streco:v:36:y:2016:i:c:p:34-49
    DOI: 10.1016/j.strueco.2015.10.003
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    2. Korzinov, Vladimir & Savin, Ivan, 2018. "General Purpose Technologies as an emergent property," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 88-104.
    3. Kim, Keungoui & Bounfour, Ahmed & Nonnis, Alberto & Özaygen, Altay, 2021. "Measuring ICT externalities and their contribution to productivity: A bilateral trade based approach," Telecommunications Policy, Elsevier, vol. 45(2).
    4. Weihua Wu & Yifan Zhang & Dongphil Chun & Yu Song & Lingli Qing & Ying Chen & Peng Li, 2022. "Research on the Operation Modes of Electric Vehicles in Association with a 5G Real-Time System of Electric Vehicle and Traffic," Energies, MDPI, vol. 15(12), pages 1-17, June.
    5. Congbo Chen & Azhong Ye, 2021. "Heterogeneous Effects of ICT across Multiple Economic Development in Chinese Cities: A Spatial Quantile Regression Model," Sustainability, MDPI, vol. 13(2), pages 1-13, January.
    6. Feder, Christophe, 2018. "The effects of disruptive innovations on productivity," Technological Forecasting and Social Change, Elsevier, vol. 126(C), pages 186-193.
    7. Josef Taalbi, 2019. "Origins and pathways of innovation in the third industrial revolution1," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(5), pages 1125-1148.
    8. Simone Vannuccini & Ekaterina Prytkova, 2021. "Artificial Intelligence’s New Clothes? From General Purpose Technology to Large Technical System," SPRU Working Paper Series 2021-02, SPRU - Science Policy Research Unit, University of Sussex Business School.
    9. Zheng, Yuelong & Zhou, Bingjie & Hao, Chen & Gao, Ruize & Li, Mengya, 2024. "Evolutionary game analysis on the cross-organizational cooperative R&D strategy of general purpose technologies under two-way collaboration," Technology in Society, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    General purpose technologies; Structural decomposition analysis; ICT; Evolutionary economics; Labor productivity;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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