TECHNOLOGY AND GROWTH IN OECD COUNTRIES, 1970-1990

This paper investigates the empirical regularities and differences in the relationship between technology and growth across 20 OECD countries from 1970 to 1990. While the broad association between GDP per capita and technology indicators is confirmed, the relationships change over time and a variety of national patterns is found. Most countries have mainly relied upon one on the two 'engines of growth' offered by technology: either disembodied innovative activity (proxied by RandD intensity) or technology embodied in investment (proxied by capital formation per employee). However, with decreasing scope far catching up, growth appears stronger where it is sustained by a more balanced use of the two 'engines of growth'.