TITLE:
A New Index for Identifying Technology Development in OECD Countries
AUTHORS:
Ben David Nissim, Garyn Tal Sharon
KEYWORDS:
Technology Index, OECD Countries
JOURNAL NAME:
Modern Economy,
Vol.9 No.3,
March
21,
2018
ABSTRACT: In this
paper, we suggested a new technique for extracting a
technology index time series and calculated the technology index for 26 OECD
countries for the years 1990-2011. Assuming that production function is
Cobb-Douglas and with constant return to scale and that the labor parameter is
equal to the labor share out of the total production, we extracted the technology parameter for each year
and for each country. According to our findings, the largest advance in
technology occurred in Estonia, Slovenia, Poland, and Ireland while the
smallest advance was in Italy, Portugal, Mexico and Japan. A possible
explanation for these differences is foreign R&D spillovers.