International Technology Gap and Technology Transmission: The Policy Implications

Abstract

Income per capita differences have increased dramatically over the last fifty years. Many economists seem to recognize knowledge differences as the main factor in this worldwide economic performance divergence. Developing countries suffer significantly from lagging labour productivity and managerial efficiency related in part to the failure to adopt the latest technology or to update their labour force, and such an evidence has recently led to a huge debate about which channel is most effective in stimulating technology transfer and acquisition. In this paper we will review the policy tools that have been effective in reducing the international knowledge-gap between Developed and Developing countries, and the role played by institutional factors in accomplishing such an issue.