Regional dynamics of technical change in the U.S. structural fabricated metals industry

Techniques of production are measured in the structural fabricated metals industry across 35 states of the U.S. between 1964 and 1992. Contrary to life-cycle models and equilibrium-based theories of technology diffusion and competition, production coefficients vary markedly between regions and these differences show little sign of diminishing over time. Further investigation reveals that states have tended to occupy relatively similar positions in ‘technology-space’ over the last thirty years or so. These findings support evolutionary hypotheses about the path-dependent nature of technological change. The impacts of innovation, imitation, selection and firm entry/exit on aggregate technical change in the structural fabricated metals industry are separated. Innovation is shown to be responsible for about 45% of the improvement in techniques of production since 1964.