Technology gaps, economic growth and convergence across US states

Norman Sedgley

Applied Economics Letters, 1998, vol. 5, issue 1, 55-59

Abstract: This paper re-examines the empirical regularity of convergence in gross state product (GSP) per capita across US states. Patent data for the 48 continental United States and the District of Columbia, from the US Patent and Trademark Office, is used to account for innovation and technology differences across states. It is found that patents are an important variable in explaining state to state differences in growth. This implies technology gaps exist across states. Knowledge and technology appear to display some characteristics of private goods. Furthermore, the estimated time it takes for convergence to occur is reduced by 25% when differences in innovative activity are accounted for.

Date: 1998
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DOI: 10.1080/758540128

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