Technical Change and Regional Development: Some Further Developments with the Sequential Interindustry Model

An understanding of effects of simple processes of technical change on processes of economic development is offered, using cross-industry information flows for technical diffusion within the dynamics of interindustry production. Greater understanding and policy guidance are suggested through integrated modeling of these processes. Schumpeter’s view of technical change as an evolutionary process leading to economic development was examined in Nelson and Winter (1982), Batten, Casti and Johanssen (1986) and Dosi et al., (1988), among others. Another explanation of regional economic development relies on urbanization and other external economies stemming from locational advantage. Progress in examining regional technical change was presented in Camagni (1989) and progress in examining regional development was presented in Suarez-Villa (1989), both at this conference.

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