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Modeling And Measuring The Economic Roles Of Technology Infrastructure

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  • Gregory Tassey

Abstract

Designing and managing an economy's technology infrastructure requires both accurate economic models and data to drive them. Previous models treat technology as a homogeneous entity, thereby precluding assessing investment barriers affecting infrastructure elements. The model presented overcomes this deficiency by disaggregating the knowledge production function into key elements of the typical industrial technology based on the distinctly different investment incentives associated with each element. Without such a model, the economist's ability to assess important market failures associated with investment in the major technology elements, including those with infrastructure (public-good) characteristics, is compromised. Unfortunately, even with the correct knowledge production function, the required data are difficult to collect. This forces government agencies, which fund a majority of technology infrastructure research, to use second-best approaches for economic analyses. The second half of this paper therefore presents an analytical framework that can be driven by more accessible data and provide reasonable impact assessments until better data become available.

Suggested Citation

  • Gregory Tassey, 2008. "Modeling And Measuring The Economic Roles Of Technology Infrastructure," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(7-8), pages 615-629.
    • Handle: RePEc:taf:ecinnt:v:17:y:2008:i:7-8:p:615-629
    DOI: 10.1080/10438590701785439
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    References listed on IDEAS

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    1. Michael L. Darby & Lynne G. Zucker, 2010. "Grilichesian Breakthroughs: Inventions of Methods of Inventing and Firm Entry in Nanotechnology," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 143-164, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Emmanouil Tranos & Karima Kourtit & Peter Nijkamp, 2014. "Digital urban network connectivity: Global and Chinese internet patterns," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 409-428, June.
    2. Morretta, Valentina & Florio, Massimo & Landoni, Matteo, 2023. "The social value of Earth observation: A new evaluation framework for public high-tech infrastructures," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 407-419.
    3. Emmanouil Tranos & Peter Nijkamp, 2014. "Digital infrastructure and physical proximity," Chapters, in: André Torre & Frédéric Wallet (ed.), Regional Development and Proximity Relations, chapter 8, pages 267-290, Edward Elgar Publishing.

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