Distance from the technological frontier and its effects on income inequality: a global empirical analysis

This study explores the relationship between the distance from the technological frontier —measured by the gap in patents per capita relative to the United States— and income inequality, using panel data from 38 countries over 17 years. The analysis reveals that a greater distance from the technological frontier is positively associated with income inequality, emphasizing that innovation can reduce inequalities in national contexts. The findings suggest that policies promoting innovation and the dissemination of technologies, combined with measures to broaden access to their economic benefits, may reduce inequalities and foster less uneven economic growth.