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A technology gap approach to why growth rates differ

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  • Jan Fagerberg

    (Centre for Technology, Innovation and Culture, University of Oslo)

Abstract

This paper contains a discussion and test of the technology gap approach to development and growth. The basic hypotheses of the theory are tested on pooled cross-sectional and time-series data for 25 industrial countries for the period 1960-1983. The sample includes, in addition to 19 OECD countries, 6 of the most important industrial economies from the non-OECD area. The findings of the paper confirm that there exists a close correlation between the level of economic development, measured as GDP per capita, and the level of technological development, measured through R&D or patent statistics. Furthermore, for the group of 25 countries as a whole, technology gap models of economic growth are found to explain a large part of the actual differences in growth rates, both between countries and periods. As expected, both the scope for imitation, growth in innovative activity and "efforts" to narrow the gap (investment) appear as powerful explanatory factors of economic growth. However, when the non-OECD countries, and later USA and Japan, are removed from the sample, the explanatory power of the technology variables, especially growth in innovative activity, diminishes.

Suggested Citation

  • Jan Fagerberg, 1987. "A technology gap approach to why growth rates differ," Working Papers Archives 1987002, Centre for Technology, Innovation and Culture, University of Oslo.
    • Handle: RePEc:tik:wparch:1987002
    Note: This is an “accepted author manuscript” version of a work that was accepted for publication in Research Policy. An accepted author manuscript (AAM) is the author’s version of the manuscript of an article that has been accepted for publication and which may include any author-incorporated changes suggested through the processes of submission processing, peer review, and editor-author communications. AAMs do not include other publisher value-added contributions such as copy-editing, formatting, technical enhancements and (if relevant) pagination. The definitive version was published as Fagerberg, Jan (1987). A technology gap approach to why growth rates differ, Research Policy, 16 (2-4): 87-99, DOI: 10.1016/0048-7333(87)90025-4.
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    References listed on IDEAS

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