The dynamics of technological congruence

Cristiano Antonelli () and Christophe Feder
Additional contact information
Cristiano Antonelli: Collegio Carlo Alberto, Università Di Torino and BRICK (Bureau of Research in Innovation Complexity and Knowledge)
Christophe Feder: Dipartimento Di Scienze Economiche E Politiche, Università Della Valle d’Aosta

The Journal of Technology Transfer, 2025, vol. 50, issue 3, No 1, 779-796

Abstract: Abstract Technological congruence examines the alignment between output elasticity and relative input costs and its effects on the contingent efficiency of new technologies. The introduction of biased technological change is driven by the relative levels of input costs. In capital-abundant countries, the adoption of new capital-intensive (labor-intensive) technologies leads to an increase in output with a corresponding rise in the output elasticity of capital (labor). This paper explores the endogenous determinants and effects of technological congruence dynamics. Growth raises wages and reduces capital costs, creating a Schumpeterian loop where the new wage-to-capital cost ratio induces new directed technological changes to boost productivity. An empirical analysis using Penn World Table (PWT) data for 136 countries from 1991 to 2019 supports these findings. The policy implications stress the role and hence the need to control the bias of technological innovations to foster growth. The alignment of factor costs is crucial for effective technology transfer and global competitiveness. Since the efficiency of new technologies depends on factor costs, international technology transfer has positive effects only if and when technological congruence increases.

Keywords: Induced technological change; Factor costs levels versus changes; Biased total factor productivity; Endogenous factor costs; Schumpeterian loop; International technology transfer (search for similar items in EconPapers)
JEL-codes: O33 O40 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10961-024-10156-9 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jtecht:v:50:y:2025:i:3:d:10.1007_s10961-024-10156-9

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10961/PS2

DOI: 10.1007/s10961-024-10156-9

Access Statistics for this article

The Journal of Technology Transfer is currently edited by Albert N. Link, Donald S. Siegel, Barry Bozeman and Simon Mosey

More articles in The Journal of Technology Transfer from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().