How to Reap the Induced Technological Bonus? A Mechanism and Illustrative Implementation

Das, Gouranga (2009): How to Reap the Induced Technological Bonus? A Mechanism and Illustrative Implementation. Published in: Modern Economy , Vol. 1, No. 1 (August 2010): pp. 80-88.

Abstract

Exogenous technical progress can have uneven impacts on productivity contingent on absorptive capacity, structural congruence and trade intensity. The paper illustrates the role of enabling behind-the-border factors for effective absorption and is pertinent for discussing issues like ‘Europe 2020’or Lisbon strategy for inclusive growth. Drawing on our model, we illustrate that the capture-parameter is the propellant force for effective assimilation of foreign technology of recent vintage. The capture parameter is the outcome of endogenous decision-making process. The ‘productivity bonus’ mechanism leaves room for changing the results via skill-mix composition. However, it awaits implementation in a large-scale economy-wide modeling framework for further extension.

• Item Type: MPRA Paper
• Language: English
• Keywords: Trade, Technology Spillover, Capture, Productivity, Congruence
• Subjects: D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D50 - General; C - Mathematical and Quantitative Methods > C0 - General; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O30 - General; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights

References

Coe, D. T., Elhanan Helpman and Alexander W. Hoffmaister (1997), North-South R&D Spillovers, The Economic Journal 107, 134-49.

Cohen, Wesley M. and Daniel A. Levinthal (March 1990). Absorptive Capacity: A New Perspective on Learning and Innovation, Administrative Science Quarterly 35(1), 128-52.

Connolly, Michelle. P (1998), The Dual Nature of Trade: Measuring its Impact on Imitation and Growth”, Duke University, Department of Economics, Working Paper, 97-34, 1-28.

Das, Gouranga G. (June, 2000). “Embodied Technology Transfer via International Trade and Disaggregation of Labour Payments by Skill Level: A Quantitative Analysis in GTAP Framework”. Paper presented in the 3rd Annual GTAP Conference in Global Economic Analysis jointly organized by the Centre of Policy Studies, Monash University, Melbourne, Australia and the Centre for Global Trade Analysis, Purdue University, West Lafayette, USA.

Das, Gouranga G.(2001). Absorptive Capacity and Structural Congruence: The Binding Constraints on Technology Transfer—An Analytical Survey of the Underlying Issues, The Korean Journal of Policy Studies. 15 (2), 117-140.

----------------(2002). Trade, Technology and Human Capital: Stylised Facts and Quantitative Evidence, The World Economy. February 25 (2), 257-281.

---------------(2003). Trade, Endogenous Technology Capture and Induced Productivity: A Numerical Analysis. Ride Journal of Economics and Business (Korean), Vol. 8, pp. 223-246. Hanyang University, Ansan Campus, South Korea.

Evenson, Robert E. and. Larry E. Westphal (1995), Technological Change and Technology Strategy, (Chapter 37) in Jere R. Behrman and T. N. Srinivasan (eds.) Handbook of Development Economics, Elsevier Science. III.

Guerrieri, P. and Carlo Milana (1995), Changes and trends in the world trade in high-technology products, Cambridge Journal of Economics, 19, 225-242.

Hoekman, B., Javorcik, B., 2006. Global integration and technology transfer. Palgrave.

Keller, W. (1999), How Trade Patterns And Technology Flows Affect Productivity Growth. NBER Working Paper, 6990, 1-30+Appendix (Cambridge, MA).

Meijl, Hans. van and Frank van Tongeren (1998), Trade, Technology Spillovers, and Food Production in China, Weltwirtschaftliches Archiv, Band 134 (Heft 3), 443-449.

Nelson, Richard R. and Howard Pack (1999), The Asian Miracle and Modern Growth Theory, The Economic Journal, 109(July), 416-436.

World Bank (1999). World Development Report 1998/9: Knowledge for Development. New York, Oxford University Press.