Technological Revolutions, Structural Change, and Catching up

Abstract

This chapter interprets the transition to a more sustainable type of growth as a technological revolution in progress. The chapter opens with a general discussion of the role of technological revolutions and structural change and economic growth, with special emphasis on the acquisition of foreign technology, exports, and catching-up-based growth. It then goes on to examine whether the transition to renewable energy can be seen as a technological revolution in line with the great technological revolutions of the past. The answer to this question is in the affirmative. The final section discusses the implications of this for catching-up-based growth in China and other developing countries.

Export diversification and dependence on natural resources

“…Nonetheless, the evidence on the transition from natural resources to technologically advanced export products is rather negative. Resource exporters lag behind the developed countries in technology (Fagerberg and Verspagen, 2021) and are generally excluded from specialisation in technological production (Foster-McGregor et al, 2019).…”

Productivity effects of trade in natural resources—comparison with mechanisms of technological specialisation

“…Are resource‐rich countries excluded from the technology race? The empirical analysis of Fagerberg and Verspagen (2021) shows the wide gap between the countries that specialise in high‐tech production and those, lagging behind in terms of technology and income, that specialise in resource‐based products. The results of Foster‐McGregor et al (2019) suggest that only the inner circle of the most developed countries displays a high degree of specialisation in 4IR technologies.…”

Export Diversification and Sophistication and Industrial Policy in Tunisia

“…All of these changes created huge pressures for countries specializing in low-technology exports. The share of low-technology exports in global trade was on a downward trend (Fagerberg and Verspagen, 2020). Competition from China and other countries such as Turkey was becoming very intense.…”