Shifting the Bias: How to Disentangle Creative Adoption from Radical Innovation. Empirical Evidence from Italy and the US

Cristiano Antonelli () and Francesco Quatraro ()

Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo Alberto. WP series from University of Turin

Abstract: The standard measures of total factor productivity growth assume the neutrality of technological change. When technological change is biased, the matching between tbc factor intensity and the relative factor prices has powerful effects on total factor productivity. This paper presents a novel methodology able to take into account the effects of biased technological change and provides empirical evidence for tbc Italian and tbc US economies in the period 1980-2000.

New Economics Papers: this item is included in nep-eec, nep-ino and nep-ipr
Date: 2007-03
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