Drivers of Technology Adoption and Consequences of the Dynamics of Technology Adoption for Economic Growth

This research project studies the drivers of technology adoption as well as the consequences of the dynamics of technology adoption for economic growth.

While there is some econometric evidence that technology plays a key role in shaping the cross-country distribution of income, the evidence is based on the Solow residual rather than on direct measures of technology. The Solow residual reflects many factors, such as distortions in labor and capital markets, in addition to pure technology differences and therefore is not conclusive on the role of technology for development. Through new data sets containing information about the diffusion of over 100 specific technologies in over 150 countries over the last 200 years, this project tests existing theories of technology diffusion and growth and develops new theories that account for the role of geography and the presence of large costs of technology adoption.