Abstract
The direction of technological change matters in assessing its actual effects in terms of productivity growth and unit costs. The introduction of a single general purpose technology in a global but heterogeneous economy where regions differ sharply in terms of relative factors costs has strong asymmetric effects. A new technology is most productive where the most productive factor is least expensive. The markets for both basic and intermediary production factors play a key role in assessing the final effects of the adoption of new general purpose technologies. A dynamic approach to filiere analysis helps to grasping the role of vertical interdependencies in assessing the effects of the introduction of new technologies. A new scope for industrial policy consists in targeting the market prices of most productive production factors and selecting the direction of new technologies.
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