The technology club literature suggests a tripartite segmentation of countries into an innovation, an imitation and a stagnation club. We use a Benhabib-Spiegel type growth model embedded in a threshold regression framework to test for non-linearities in the impact of the technology gap on economic growth as suggested by the technology club hypothesis. Using human capital as the threshold variable we are able to identify three country groupings. In line with the technology club hypothesis we find the strongest effects of the technology gap on economic growth in the intermediate group which we associate with the imitation club.
Bibliographical noteFunding Information:
This publication was produced in the framework of AUGUR ( http://www.augurproject.eu ), an international economic research project whose objective is to capture, within a set of scenarios, the characteristics and implications of a variety of patterns that may occur in 2030 in all domains, be it political, economic, social, environmental or technological, in Europe and in the world. The project is funded by the Seventh Framework Programme of the EU ( www.cordis.europa.eu/fp7 ) with socio-economic sciences and humanities ( http://ec.europa.eu/research/social-sciences/index_en.html ).
- Human capital
- Technology clubs
- Technology spillovers
- Threshold regressions