Journal of Economic Literature
ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)
International Technology Diffusion
Journal of Economic Literature
(pp. 752–782)
Abstract
This paper surveys what is known about the extent of international technology diffusion and channels through which technology spreads. Productivity differences explain much of the variation in incomes across countries, and technology plays a key role in determining productivity. The pattern of worldwide technical change is determined largely by international technology diffusion because a few rich countries account for most of the world's creation of new technology. Cross-country income convergence turns on whether technology diffusion is global or local. There is no indication that international diffusion is inevitable or automatic, but rather, domestic technology investments are necessary. Better understanding of what determines the effectiveness of technology diffusion sheds light on the pace at which the world's technology frontier may expand.Citation
Keller, Wolfgang. 2004. "International Technology Diffusion." Journal of Economic Literature 42 (3): 752–782. DOI: 10.1257/0022051042177685JEL Classification
- D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- F23 Multinational Firms; International Business
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- O32 Management of Technological Innovation and R&D
- O33 Technological Change: Choices and Consequences; Diffusion Processes