Technology and productivity in developing countries: A survey of the literature

r4d Working Paper 2015/9 by Doris Oberdabernig

ABSTRACT:

This paper aims to survey the literature on technological change and mechanisms of technolo-gy diffusion, with a special focus on developing countries. We investigate theoretical models of technology spillovers, discuss possible forms of measuring diffusion, and summarize the findings of empirical studies. The picture that emerges is a heterogeneous one, with weak evidence for the existence of automatic technology diffusion in developing countries. Nation-al policies aimed at increasing human capital, providing adequate infrastructure, and enhanc-ing technology transfers might be necessary for technological spillovers to materialize.