The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Diffusion of Technology

  • Wolfgang Keller
Reference work entry


The diffusion of technology has a major impact on per-capita income. Moreover, international convergence turns on whether technology diffusion is local or global. This article characterizes the creation of technological knowledge and discusses the primary determinants of diffusion. It is shown that even today technology diffusion is to an important degree local, allowing for many technological knowledge levels in the world to coexist. This article focuses on the data and empirical methods employed in the estimation of diffusion patterns.


Asymmetric information Control functions Diffusion of technology Economic growth Human capital Instrumental variables Intermediate goods Knowledge spillovers Monopoly Neoclassical growth theory Patents Product market competition Research and development Tacit knowledge Technical change Technology spillovers Total factor productivity 

JEL Classifications

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Wolfgang Keller
    • 1
  1. 1.