MODELING AND MEASURING THE ECONOMIC ROLES OF TECHNOLOGY INFRASTRUCTURE

Published

January 1, 2008

Author(s)

Gregory C. Tassey

Abstract

Designing and managing an economy’s technology infrastructure requires both accurate economic models and data to drive them. Previous models treat technology as a homogeneous entity, thereby precluding assessing investment barriers affecting infrastructure elements. The model presented overcomes this deficiency by disaggregating the knowledge production function into key elements of the typical industrial technology based on the distinctly different investment incentives associated with each element. Without such a model, the economist’s ability to assess important market failures associated with investment in the major technology elements, including those with infrastructure (public-good) characteristics, is compromised. Unfortunately, even with the correct knowledge production function, the required data are difficult to collect. This forces government agencies, which fund a majority of technology infrastructure research, to use second-best approaches for economic analyses. The second half of this paper therefore presents an analytical framework that can be driven by more accessible data and provide reasonable impact assessments until better data become available.

Citation

Economics of Innovation and New Technology

Volume

17

Issue

7

Pub Type

Journals

Download Paper

https://doi.org/10.1080/10438590701785439

Keywords

Technology infrastructure, Technological change, Innovation, Knowledge creation, Knowledge production function, R&D productivity, R&D policy, Program impact assessment

Citation

Tassey, G. (2008), MODELING AND MEASURING THE ECONOMIC ROLES OF TECHNOLOGY INFRASTRUCTURE, Economics of Innovation and New Technology, [online], https://doi.org/10.1080/10438590701785439 (Accessed April 24, 2024)