Distance to the Pre-industrial Technological Frontier and Economic Development
108 Pages Posted: 22 Jan 2012 Last revised: 28 Feb 2018
Date Written: February 19, 2018
This research explores the effects of distance to the pre-industrial technological frontiers on comparative economic development in the course of human history. It establishes theoretically and empirically that distance to the frontier had a persistent non-monotonic effect on a country's pre-industrial economic development. In particular, advancing a novel measure of the travel time to the technological frontiers, the analysis establishes a robust persistent U-shaped relation between distance to the frontier and pre-industrial economic development across countries. Moreover, it demonstrates that countries, which throughout the last two millennia were relatively more distant from these frontiers, have higher contemporary levels of innovation and entrepreneurial activity, suggesting that distance from the frontier may have fostered the emergence of a culture conducive to innovation, knowledge creation, and entrepreneurship.
Keywords: Comparative Development, Geographical Distance, Culture and Technology, Innovation, Technological Diffusion and Imitation, Patenting Activity, Entrepreneurship
JEL Classification: E02, F15, F43, N10, N70, O11, O14, O31, O33, Z10
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