nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2014‒10‒13
two papers chosen by
Fulvio Castellacci
Norsk Utenrikspolitisk Institutt

  1. The Middle Income Trap: A Way Out Based on Technological and Structural Change By Marco Vivarelli
  2. Productivity Growth during the British Industrial Revolution: Revisionism Revisited By Crafts, Nicholas

  1. By: Marco Vivarelli (DISCE, Università Cattolica)
    Abstract: This paper is intended to provide an updated discussion on a series of issues that the relevant literature suggests to be crucial in dealing with the challenges a middle income country may encounter in its attempts to further catch-up a higher income status. In particular, the conventional economic wisdom – ranging from the Lewis-Kuznets model to the endogenous growth approach– will be contrasted with the Schumpeterian and evolutionary views pointing to the role of capabilities and knowledge, considered as key inputs to foster economic growth. Then, attention will be turned to structural change and innovation, trying to map – using the taxonomies put forward by the innovation literature – the concrete ways through which a middle income country can engage a technological catching-up, having in mind that developing countries are deeply involved into globalized markets where domestic innovation has to be complemented by the role played by international technological transfer. Among the ways how a middle income country can foster domestic innovation and structural change in terms of sectoral diversification and product differentiation, a recent stream of literature underscores the potentials of local innovative entrepreneurship, that will also be discussed bridging entrepreneurial studies with the development literature. Finally, the possible consequences of catching-up in terms of jobs and skills will be discussed.
    Keywords: catching-up, structural change, globalization, capabilities, innovation, entrepreneurship.
    JEL: O14 O33
    Date: 2014–09
  2. By: Crafts, Nicholas (CAGE, The University of Warwick)
    Abstract: This paper re-examines output and productivity growth during the British industrial revolution in the light of recent research. Revised estimates are presented which incorporate new findings on the structure of employment, in particular, that the level of industrialization in the mid-18th century is now known to be considerably higher than was assumed in earlier work. This implies that industrial labour productivity growth was faster than believed by authors of the 1980s but still slower than earlier writers claimed. It is shown that in most important respects the Crafts-Harley view of macroeconomic growth remains basically intact.
    Keywords: industrial revolution; productivity growth; take-off
    Date: 2014

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