Technology diffusion and uneven development

Knez, Klemen (author)

We propose a conceptualisation of the process of technology adoption that takes into account the uneven relative costs of technology implementation, especially country differences in wage levels. The novelties and contributions of our approach are the following. First, we introduce a dynamic macroeconomic model of technology diffusion, which is the first to directly account for the difference in factor cost proportions in an endogenous cross-country setting. Second, we utilise the Cross-country Historical Adoption of Technology (CHAT) and Penn World Table databases to calibrate the model using non-linear approximation across countries and technologies, which explains about 50% of the variability in technology density. Third, the results of the calibrated model offer a new insight into the dynamics and patterns of technology diffusion of differently developed countries, offering both an approximation of the average technology adoption across differently developed countries over time and an approximation of the relative technology density adoption curves, which are country specific generalisations of the logistic curves and depend highly on the general level of development and wage levels.

• Language: English
• Keywords: technology diffusion, uneven development, choice of technique, wage differentials
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: FDV - Faculty of Social Sciences
• Publication status: Published
• Publication version: Version of Record
• Year: 2023
• Number of pages: Str. 1171–1195
• Numbering: Vol. 33, iss. 4
• PID: 20.500.12556/RUL-152548
• UDC: 330.34
• ISSN on article: 0936-9937
• DOI: 10.1007/s00191-023-00830-w
• COBISS.SI-ID: 162725891
• Publication date in RUL: 27.11.2023

Record is a part of a journal

• Title: Journal of evolutionary economics
• Publisher: Springer Nature
• ISSN: 0936-9937
• COBISS.SI-ID: 478236

Licences

• License: CC BY 4.0, Creative Commons Attribution 4.0 International
• Link: http://creativecommons.org/licenses/by/4.0/
• Description: This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.

Projects

• Funder: ARRS - Slovenian Research Agency
• Funding programme: Young researchers