Knowledge, Technological Catch-up and Economic Growth investigates the relationship between knowledge diffusion and economic growth. Using a broad definition of knowledge – encompassing technology, production skills, know-how and firm capabilities – the central argument of the book is that the extent of knowledge diffusion is an important determinant of economic growth.
Mark Rogers uses both neoclassical and endogenous growth models to construct testable hypotheses in order to gauge whether countries that are good at acquiring and diffusing new knowledge actually do achieve faster economic growth. His empirical analysis uses new data on communications, international business links, and study abroad in order to proxy absorptive capability and to test these hypotheses. Arguing that existing research on the role of knowledge is underdeveloped, the book aims to convince mainstream economists who perceive knowledge as conceptually vague and too difficult to measure, that the role of knowledge can in fact be analysed and quantified.
Making new contributions to the understanding of economic growth, this book will appeal to students, researchers, economists and policy makers with a particular interest in economic performance and the growth process, and knowledge management and technology.