Cognitive skills, innovation and technology diffusion

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Messinis, George and Ahmed, Abdullahi D (2010) Cognitive skills, innovation and technology diffusion. Working Paper. Victoria University, Melbourne, Australia.


This paper examines the Benhabib and Spiegel (2005) model of technology diffusion using a new latent index of human capital and competing indicators that include the Barro and Lee (2010) estimates. The new index is a measure of education quality for seventy nations in 1970-2003. Analysis utilises both cross-section and dynamic panel GMM estimation and extends beyond the Cobb-Douglas production technology. The new evidence indicates that (i) the new index is most consistent with the model; (ii) the skills-education gap has widened in Africa and advanced OECD countries, and (iii) capital-skill complementarities and skill-biased-technical-change have become global phenomena.

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Item type Monograph (Working Paper)
DOI No. 48
Subjects Historical > FOR Classification > 1402 Applied Economics
Historical > Faculty/School/Research Centre/Department > Centre for Strategic Economic Studies (CSES)
Keywords education, skills, human capital, growth, innovation, diffusion, CSC, SBTC
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