Cross-Country Technology Adoption: Trickle down diffusion

A new study by Diego Comin and Bart Hobijn, economists at the Federal Reserve Bank of New York, examines technology adoption processes across a range of technologies and time periods.

Our results suggest a pattern of trickle-down diffusion that is remarkably robust across technologies. Most of the technologies that we consider originate in advanced economies and are adopted there first. Subsequently, they trickle down to countries that lag economically. Our panel data analysis indicates that the most important determinants of the speed at which a country adopts technologies are the country’s human capital endowment, type of government, degree of openness to trade, and adoption of predecessor technologies.

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