This research theme addresses the relationships between technological change, productivity, economic growth and socio-economic development at the macro level. It focuses on a range of questions with respect to the impact of innovation and technological change on productivity, growth, employment, human capital, inequality, poverty, sustainability and socio-economic development. These questions are studied in an international comparative perspective including advanced economies in Europe and elsewhere, developing economies and economies in transition. The analysis of growth and development will be enlarged to include processes of catch up, forging ahead and falling behind. The focus of research theme II is on macro issues, but there are links with research themes I (Micro-based evidence research on innovation and technological change) and III (Knowledge and industrial dynamics) in the sense that the study of micro-dynamics of households, firms and sectors contributes to our understanding of relationships at the macro-level.

A key concept linking innovation and technology with growth and development is productivity. Technological change is one of the major forces resulting in improved productivity and growth of income per capita. Productivity growth implies enhanced productive capabilities, which can potentially be used to fulfil a variety of human needs and realise social goals in the context of economic development. Socio-economic development is a broader concept than economic growth. It includes aspects such as the degree of inequality within and between societies, the environmental sustainability of increased production, the creation of employment and the fulfilment of basic human needs.

The research programme entails two types of research activities

1. The theoretical modelling of the sources and mechanisms of economic growth and development, and the role of technology and human capital in generating socially and environmentally sustainable growth. Such models can be used for the identification of policy options, policy constraints and ultimately for the design of economic policy
2. The empirical measurement and analysis of growth and development in order to identify and quantify important sources of growth, as well as obstacles and bottlenecks in growth and development. This involves the development of measurement tools, databases and the application of econometric and growth accounting methods.

Keywords

Technology, productivity and growth
Human capital and growth
Sectoral analysis of growth performance
Technology, wages, skill bias and employment
Technological change, income distribution and equity
Human capital, health and growth
Technological change and sustainable development

Research Coordinator
  Adam Szirmai

Researchers:
  Francisco Aguayo
  Semih Akçomak
  Théophile T. Azomahou
  Zakaria Babutsidze
  Theo Dunnewijk
  Abraham Garcia
  Alexis Habiyaremye
  Boamin Hu
  Than Le Phuoc
  Angus Maddison
  Huub Meijers
  Evans Mupela
  Joan Muysken
  Enrico Perotti
  Gerald Silverberg
  Ezequiel Tacsir
  Bart Verspagen
  Daniel Vertesy
  Bas ter Weel
  Kirsten Wiebe
  Thomas Ziesemer
  Adriaan van Zon

Project listing under this theme

Further elaboration

Subthemes

I. Drivers and mechanisms of technological change and their contribution to growth and development

• the impact of demand factors on growth and technological change
• the role infrastructure in growth
• resource availability
• education and human capital and their contribution to growth and development
• health status as an aspect of  human capital, with special reference to aids development aid, health and development
• social capital, innovation and economic development
• international division of labour, trade, development and welfare

Technological change, productivity and growth in economic sectors and their contributions to aggregate growth performance

• The changing structure of global manufacturing: nations and sectors in the context of world manufacturing
• technological change and productivity growth
• structural change and economic development
• measurement of divergence, convergence and catch up
• measurement of embodied and disembodied technological change

Growth, equity and sustainable development

• sector structure, technology selection and environmental sustainability
• transitions between general purpose technologies and their implications for environmental sustainability
• a portfolio approach to production and trade diversity and the timing of policies to reduce vulnerability to external shocks and enhance sustainability

Projects by subtheme

I. Drivers and mechanisms of technological change and their contribution
to growth and development

• Demand and Economic Growth in Networks of Heterogeneous Consumers (Zakariah Babutsidze)
• Modelling Demand in Growth Models (Abraham Garcia)
• Social Capital Innovation and Economic Development (Semih Akçomak)
• International Migration of Highy Skilled Workers [contribution to World Knowledge Report] (Theo Dunnewijk)
• Internationalisation of ICT, outsourcing and ..(EU) (Huub Meijers en Theo Dunnewijk)
• ICT and Development (Huub Meijers).
• ICT, spillovers and human capital (Huub Meijers)
• Diffusion of embedded systems technology in Europe )Huub Meijers’
• Study on Innovative ICT SMEs in Europe (EU25) (Theo Dunnewijk).
• Evolution of General Purpose Technologies over time (Adriaan van Zon, Huub Meijers, Tobias Kronenburg).
• Satellite communication, ICT use and their impacts on economic development in Sub/Saharan Africa (Evans Mupela, Joan Muysken, Adriaan van Zon)
• Explaining the emergence of bottom of the pyramid investment in a North South setting (Adriaan van Zon).
• Offshoring Technology and Skills (Huub Meijer).
• Explaining success and failure in development (Eddy Szirmai).
• international specialisation and welfare improvements at country level: appropriate responses to trade inbalances (Ziesemer)
• Economic Growth, Income Inequality and Public Capital (Yoseph Getachew)
• The economic impacts of remittances (Thomas Ziesemer)
• Effects of aging and migration in Europe (Thomas Ziesemer’

II.  Technological change, productivity and growth in economic sectors and their contributions to aggregate growth performance

• Productivity growth and structural change in Chinese manufacturing (Eddy Szirmai and Lili Wang)
• Measuring capital stocks in Chinese industry (Lili Wang and Eddy Szirmai).
• The changing structure of world manufacturing (Eddy Szirmai)
• Financial Innovation and Productivity in Banking in Asia (Thanh Phuoc Le)
• Developing countries in the structure of the global aerospace industry (Daniel Vertesy)
• The micro-dynamics of growth in Indonesian Paper manufacturing (Michiel van Dijk and Eddy Szirmai).
• Knowledge Spillovers, Innovation and Economic Performance in Developing Countries. Empirical Evidence from the Uruguay Software Cluster (Effie Kesidou and Eddy Szirmai)

III. Growth, equity and sustainable development

• Technology and Sustainable Growth: general purpose technologies, Lock-in, diversification versus specialisation] (Adriaan van Zon and Huub Meijers).
• Technical Change and the transition from non-sustainable to sustainable development (Adriaan van Zon, Sabine Fuss)

1. Micro-based evidence research on innovation and technological change
2. Technology, growth and development
3. Knowledge and industrial dynamics
4. Innovation, global business strategies and host country development
5. The governance of science technology and innovation

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