IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v36y2016icp34-49.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X15000491
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.strueco.2015.10.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
    2. Fabrizio Ferretti, 2008. "Patterns of technical change: a geometrical analysis using the wage-profit rate schedule," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(5), pages 565-583.
    3. Kevin M. Murphy & Finis Welch, 1992. "The Structure of Wages," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 285-326.
    4. Susanto Basu & John G. Fernald, 2008. "Information and communications technology as a general purpose technology: evidence from U.S. industry data," Economic Review, Federal Reserve Bank of San Francisco, pages 1-15.
    5. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676, January.
    6. Pan, Haoran, 2006. "Dynamic and endogenous change of input-output structure with specific layers of technology," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 200-223, June.
    7. Allen, Steven G, 2001. "Technology and the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 440-483, April.
    8. Majumdar, Sumit K., 0. "Broadband adoption, jobs and wages in the US telecommunications industry," Telecommunications Policy, Elsevier, vol. 32(9-10), pages 587-599, October.
    9. Zhuk B.Р., 2014. "Administrative Services In The Field Of Education," Management, Academy of Municipal Administration, vol. 9(4), pages 162-170, November.
    10. Dale W. Jorgenson & Marcel P. Timmer, 2011. "Structural Change in Advanced Nations: A New Set of Stylised Facts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 1-29, March.
    11. Francesco Bogliacino & Matteo Lucchese, 2016. "Endogenous skill biased technical change: testing for demand pull effect," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(2), pages 227-243.
    12. Oecd, 2014. "How Innovative is the Education Sector?," Education Indicators in Focus 24, OECD Publishing.
    13. Pasinetti,Luigi, 1993. "Structural Economic Dynamics," Cambridge Books, Cambridge University Press, number 9780521432825, November.
    14. Alan B. Krueger, 1993. "How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984–1989," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(1), pages 33-60.
    15. Dale Jorgenson & Mun Ho & Jon Samuels & Kevin Stiroh, 2007. "Industry Origins of the American Productivity Resurgence," Economic Systems Research, Taylor & Francis Journals, vol. 19(3), pages 229-252.
    16. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1169-1213.
    17. Bogliacino, Francesco & Lucchese, Matteo & Pianta, Mario, 2013. "Job creation in business services: Innovation, demand, and polarisation," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 95-109.
    18. Dale W. Jorgenson & Marcel P. Timmer, "undated". "Structural Change in Advanced Nations," Working Paper 13525, Harvard University OpenScholar.
    19. Aghion, Philippe & Howitt, Peter & Violante, Giovanni L, 2002. "General Purpose Technology and Wage Inequality," Journal of Economic Growth, Springer, vol. 7(4), pages 315-345, December.
    20. Levy, Frank & Murnane, Richard J, 1996. "With What Skills Are Computers a Complement?," American Economic Review, American Economic Association, vol. 86(2), pages 258-262, May.
    21. Kalmbach, Peter & Kurz, Heinz D., 1990. "Micro-electronics and employment: A dynamic input-output study of the West German economy," Structural Change and Economic Dynamics, Elsevier, vol. 1(2), pages 371-386, December.
    22. Oleinik V.V., 2014. "State Innovation Policy Postgraduate Education," Management, Academy of Municipal Administration, vol. 9(3), pages 116-124, June.
    23. Erik Dietzenbacher & Bart Los, 1997. "Analyzing Decomposition Analyses," Palgrave Macmillan Books, in: András Simonovits & Albert E. Steenge (ed.), Prices, Growth and Cycles, chapter 6, pages 108-131, Palgrave Macmillan.
    24. Jacobs, Bas & Nahuis, Richard, 2002. "A general purpose technology explains the Solow paradox and wage inequality," Economics Letters, Elsevier, vol. 74(2), pages 243-250, January.
    25. Jovanovic, Boyan & Rousseau, Peter L., 2005. "General Purpose Technologies," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 18, pages 1181-1224, Elsevier.
    26. repec:adr:anecst:y:1998:i:49-50:p:02 is not listed on IDEAS
    27. Philippe Aghion & Peter Howitt, 1999. "On the Macroeconomic Effects of Major Technological Change," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 25, pages 15-32.
    28. Leontief, Wassily & Duchin, Faye, 1986. "The Future Impact of Automation on Workers," OUP Catalogue, Oxford University Press, number 9780195036237.
    29. Koski, H. & Rouvinen, P. & Yla-Anttila, P., 2002. "ICT clusters in Europe The great central banana and the small Nordic potato," Information Economics and Policy, Elsevier, vol. 14(2), pages 145-165, June.
    30. repec:bla:germec:v:8:y:2007:i::p:146-173 is not listed on IDEAS
    31. Matteo Degasperi & Thomas Fredholm, 2010. "Productivity Accounting Based On Production Prices," Metroeconomica, Wiley Blackwell, vol. 61(2), pages 267-281, May.
    32. Michl, Thomas R, 1991. "Wage-Profit Curves in U.S. Manufacturing," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 15(3), pages 271-286, September.
    33. Oecd, 2014. "What Are the Earnings Advantages from Education?," Education Indicators in Focus 27, OECD Publishing.
    34. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    35. Yang, Ling & Lahr, Michael L., 2010. "Sources of Chinese labor productivity growth: A structural decomposition analysis, 1987-2005," China Economic Review, Elsevier, vol. 21(4), pages 557-570, December.
    36. Angioloni, Simone & Ames, Glenn C.W. & Houston, Jack, 2014. "Food Insecurity and Educational Achievement," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162478, Southern Agricultural Economics Association.
    37. Vaona, Andrea, 2011. "Profit rate dynamics, income distribution, structural and technical change in Denmark, Finland and Italy," Structural Change and Economic Dynamics, Elsevier, vol. 22(3), pages 247-268, September.
    38. Müge Adalet McGowan & Stéphanie Jamet, 2012. "Sluggish Productivity Growth in Denmark: The Usual Suspects?," OECD Economics Department Working Papers 975, OECD Publishing.
    39. Oecd, 2014. "Does Homework Perpetuate Inequities in Education?," PISA in Focus 46, OECD Publishing.
    40. A. Rainer & R. Strohmaier, 2014. "Modeling the diffusion of general purpose technologies in an evolutionary multi-sector framework," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 425-444, August.
    41. repec:rre:publsh:v:38:y:2008:i:3:p:319-41 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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).
    2. 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).
    3. 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.
    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. Antoci, Angelo & Iannucci, Gianluca & Rocchi, Benedetto & Ticci, Elisa, 2023. "The land allocation game: Externalities and evolutionary competition," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 124-133.
    6. 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.
    7. Korzinov, Vladimir & Savin, Ivan, 2018. "General Purpose Technologies as an emergent property," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 88-104.
    8. Feder, Christophe, 2018. "The effects of disruptive innovations on productivity," Technological Forecasting and Social Change, Elsevier, vol. 126(C), pages 186-193.
    9. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Strohmaier, Rita & Rainer, Andreas, 2013. "On the Eonomic Purpose of General Purpose Technologies: A Combined Classical and Evolutionary Framework," MPRA Paper 45964, University Library of Munich, Germany.
    2. Borghans, Lex & ter Weel, Bas, 2007. "The diffusion of computers and the distribution of wages," European Economic Review, Elsevier, vol. 51(3), pages 715-748, April.
    3. Silla, Anne & Kallberg, Veli-Pekka, 2016. "Effect of railway safety education on the safety knowledge and behaviour intention of schoolchildren," Evaluation and Program Planning, Elsevier, vol. 55(C), pages 9-16.
    4. Edward Wolff, 2006. "The growth of information workers in the US economy, 1950-2000: the role of technological change, computerization, and structural change," Economic Systems Research, Taylor & Francis Journals, vol. 18(3), pages 221-255.
    5. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1169-1213.
    6. Majumdar, Sumit K., 2014. "Technology and wages: Why firms invest and what happens," Technology in Society, Elsevier, vol. 39(C), pages 44-54.
    7. Ekaterina Prytkova, 2021. "ICT's Wide Web: a System-Level Analysis of ICT's Industrial Diffusion with Algorithmic Links," Jena Economics Research Papers 2021-005, Friedrich-Schiller-University Jena.
    8. Keiichi Kishi, 2015. "Dynamic analysis of wage inequality and creative destruction," Journal of Economics, Springer, vol. 115(1), pages 1-23, May.
    9. A. Rainer & R. Strohmaier, 2014. "Modeling the diffusion of general purpose technologies in an evolutionary multi-sector framework," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 425-444, August.
    10. 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).
    11. Borghans, Lex & ter Weel, Bas, 2004. "What happens when agent T gets a computer?: The labor market impact of cost efficient computer adoption," Journal of Economic Behavior & Organization, Elsevier, vol. 54(2), pages 137-151, June.
    12. Bresnahan, Timothy F, 1999. "Computerisation and Wage Dispersion: An Analytical Reinterpretation," Economic Journal, Royal Economic Society, vol. 109(456), pages 390-415, June.
    13. Weinberg, Bruce A., 2004. "Experience and Technology Adoption," IZA Discussion Papers 1051, Institute of Labor Economics (IZA).
    14. Uwe Cantner & Simone Vannuccini, 2012. "A New View of General Purpose Technologies," Jena Economics Research Papers 2012-054, Friedrich-Schiller-University Jena.
    15. Borghans, L. & ter Weel, B.J., 2002. "Do older workers have more trouble using a computer than younger workers?," ROA Research Memorandum 1E, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    16. Mario Pianta, 2018. "Technology and Employment: Twelve Stylised Facts for the Digital Age," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(2), pages 189-225, June.
    17. Thomas Philippon & Ariell Reshef, 2009. "Wages and Human Capital in the U.S. Financial Industry: 1909-2006," NBER Working Papers 14644, National Bureau of Economic Research, Inc.
    18. Wolff, Edward N., 2009. "Are computers driving real wages down?," Information Economics and Policy, Elsevier, vol. 21(3), pages 211-228, August.
    19. Lex Borghans & Bas ter Weel, 2011. "Computers, skills and wages," Applied Economics, Taylor & Francis Journals, vol. 43(29), pages 4607-4622.
    20. Carlos Medina & Christian Posso, 2010. "Technical Change and Polarization of the Labor Market: Evidence for Brazil, Colombia and Mexico," Borradores de Economia 614, Banco de la Republica de Colombia.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:36:y:2016:i:c:p:34-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.