Microeconomics of Technology Adoption

Posted: 21 Jan 2010

See all articles by Mark R. Rosenzweig

Mark R. Rosenzweig

Yale University - Economic Growth Center; Yale University - Cowles Foundation

Andrew D. Foster

Brown University - Department of Economics; Brown University - Watson Institute for International and Public Affairs; University of Pennsylvania - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: January 21, 2010

Abstract

There is an emerging consensus among macro-economists that differences in technology across countries account for the major differences in per-capita GDP and the wages of workers with similar skills across countries. Accounting for differences in technology levels across countries thus can go a long way towards understanding global inequality. One mechanism by which poorer countries can catch up with richer countries is through technological diffusion, the adoption by low-income countries of the advanced technologies produced in high-income countries. In this survey, we examine recent micro studies that focus on understanding the adoption process. If technological diffusion is a major channel by which poor countries can develop, it must be the case that technology adoption is incomplete or the inputs associated with the technologies are under-utilized in poor, or slow-growing economies. Thus, obtaining a better understanding of the constraints on adoption is useful in understanding a major component of growth.

Keywords: technology adoption review

JEL Classification: O10, O13, O33

Suggested Citation

Rosenzweig, Mark Richard and Foster, Andrew D., Microeconomics of Technology Adoption (January 21, 2010). Yale University Economic Growth Center Discussion Paper No. 984; Yale Economics Department Working Paper No. 78. Available at SSRN: https://ssrn.com/abstract=1540038

Mark Richard Rosenzweig (Contact Author)

Yale University - Economic Growth Center ( email )

Box 208269
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Yale University - Cowles Foundation

Box 208281
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Andrew D. Foster

Brown University - Department of Economics ( email )

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Providence, RI 02912
United States
401-863-2537 (Phone)

Brown University - Watson Institute for International and Public Affairs ( email )

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Box 1970
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University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
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United States

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