Global Technology Cycles and Local Economic Performance

Sebastian Heinrich (), Samad Sarferaz () and Martin Wörter ()
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Sebastian Heinrich: KOF Swiss Economic Institute, ETH Zurich, Switzerland
Samad Sarferaz: KOF Swiss Economic Institute, ETH Zurich, Switzerland
Martin Wörter: KOF Swiss Economic Institute, ETH Zurich, Switzerland
Authors registered in the RePEc Author Service: Martin Woerter

No 22-511, KOF Working papers from KOF Swiss Economic Institute, ETH Zurich

Abstract: This paper studies the global synchronicity of technology and its impact on the economy. We employ dynamic factor analysis to decompose patent data in different digital technologies for various countries into global and country-speciffc factors. Our findings confirm the existence of global and local technology cycles. We further find a significant positive correlation between the estimated global technology index and a country's economic performance. This positive effect is stronger in countries with broad tech-nological exposure. However, a concentration in only few dominant techno-logical fields seems to reduce the positive impact of the global technology cycle on a country's economic performance.

Keywords: innovation index; dynamic factor model; patent data; produc- tivity growth; knowledge diffusion; digitalization; globalization (search for similar items in EconPapers)
JEL-codes: C38 L86 O31 O33 O47 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2023-05
New Economics Papers: this item is included in nep-cse, nep-ict, nep-ino, nep-int and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:kof:wpskof:22-511

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