“Technology” and “competitiveness” are two of the most popular buzz-words of our time. Increasingly policy makers on both sides of the Atlantic link the two. But what do we really mean when we talk about the international competitiveness of a country? And what does technology have to do with it? Is there a theory behind this link? What about the empirical evidence? This paper addresses these questions from a long-run perspective.
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Jan Fagerberg (1996) studied this question.