Catching-up in a globalised context: Technological change as a driver of growth
Bart Verspagen & Mary Kaltenberg
This paper aims to understand the role that technology plays,
particularly in structural change, as a driver of economic growth.
Noting the exceptional few countries that succeeded in becoming a
developed state and the accelerated period of globalisation (1995 -
2009), we analyse growth patterns at the product, sectoral and
macroeconomic levels. Utilising trade data, we detail the type of
complex products exported as a reflection of a nation's latent
capabilities. At the sectoral level, technological shifts are observed
through a TFP analysis to understand how countries use technological
progress at varying development stages to realise economic growth.
Finally, we use input-output analysis for a macroeconomic perspective on
the impact of globalisation on production by sector and on demand
patterns of foreign and domestic markets, both globally and regionally.
JEL Classification: F620, O300,O470
Key words: Technological Change, Development and Economic Growth, Structural change, International Trade, Convergence