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Long-Term Barriers to the International Diffusion of Innovations

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  • Spolaore, Enrico
  • Wacziarg, Romain

Abstract

We document an empirical relationship between the cross-country adoption of technologies and the degree of long-term historical relatedness between human populations. Historical relatedness is measured using genetic distance, a measure of the time since two populations? last common ancestors. We find that the measure of human relatedness that is relevant to explain international technology diffusion is genetic distance relative to the world technological frontier (?relative frontier distance?). This evidence is consistent with long-term historical relatedness acting as a barrier to technology adoption: societies that are more distant from the technological frontier tend to face higher imitation costs. The results can help explain current differences in total factor productivity and income per capita across countries.

Suggested Citation

  • Spolaore, Enrico & Wacziarg, Romain, 2011. "Long-Term Barriers to the International Diffusion of Innovations," CEPR Discussion Papers 8541, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8541
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    More about this item

    Keywords

    Genetic distance; Technological adoption; Technological frontier; Total factor productivity;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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