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Codification, Technology Absorption, and the Globalization of the Industrial Revolution

Author

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  • Juhász, Réka
  • Sakabe, Shogo
  • Weinstein, David

Abstract

This paper studies technology absorption worldwide in the late nineteenth century. We construct several novel datasets to test the idea that the codification of technical knowledge in the vernacular was necessary for countries to absorb the technologies of the Industrial Revolution. We find that comparative advantage shifted to industries that could benefit from patents only in countries and colonies that had access to codified technical knowledge but not in other regions. Using the rapid and unprecedented codification of technical knowledge in Meiji Japan as a natural experiment, we show that this pattern appeared in Japan only after the Japanese government codified as much technical knowledge as what was available in Germany in 1870. Our findings shed new light on the frictions associated with technology diffusion and offer a novel take on why Meiji Japan was unique among non-Western countries in successfully industrializing during the first wave of globalization.

Suggested Citation

  • Juhász, Réka & Sakabe, Shogo & Weinstein, David, 2024. "Codification, Technology Absorption, and the Globalization of the Industrial Revolution," CEPR Discussion Papers 19208, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:19208
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    More about this item

    Keywords

    Industrialization; Technology adoption; Development; Productivity; Industrial policy; Japan;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East

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