Regional Technological Distance and Catching Up

Maurice J. Oude Wansink and Hans Maks

Chapter 14 in Innovation, Networks and Localities, 1999, pp 300-317 from Springer

Abstract: Abstract A convenient way to find out how things are going is by taking a look at your neighbours. In this chapter we develop a method for the evaluation of regional economic performance based on an input-output framework. We define economic criteria for measuring this performance, such as real GDP per worker, and pick out the `best’ performing region per sector. Taken together for all sectors, the input vectors of those `best’ performing regions define an optimal input matrix. Differences between a region’s input matrix and the optimal input matrix define the region’s `technological distance’. We use this concept to explain regional convergence in The Netherlands for 11 regions and 29 business sectors between 1980 and 1992. We find evidence for a relationship between the level of GDP per worker and technological distance. Since over the study period technological distance decreased in all regions, we provide an explanation for convergence. Finally, the concept of technological distance is used for signalling bottlenecks and economic waste in regional production. Best performing technologies are obviously more capital intensive and less labour intensive.

Keywords: Regional Convergence; Regional Income; Optimal Input; Input Coefficient; Technological Distance (search for similar items in EconPapers)
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:spr:adspcp:978-3-642-58524-1_14

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DOI: 10.1007/978-3-642-58524-1_14

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