Technological dynamics in asymmetric industries: R&D, spillovers and absorptive capacity
- The analysis we present is concerned with the technological dynamics within economic sectors. A simple model of the technological interaction between best-practice and below best-practice firms is used to identify the mechanism of catching-up and falling-behind. Here the spillover effects and the absorptive capacity of firms are of major importance. We test the model empirically applying OLS and non-linear least squares on firms'data from the German electronics and machinery sectors. We can show that the model's mechanism seems to be relevant for a technologically determined structural change in these sectors although considerable differences are detected.
