Abstract
The author suggests that innovatory development for one industry may have much wider applications in other industries, not necessarily related to the industry for which the innovation was developed. The mapping of interindustry flows of new technology greatly assists our understanding of technological change and its resultant economic impact. Policy decisions with regard to the funding of research and development are of importance once it is realized that the decisions may not be based on the industry which gains the most benefit from the innovation. The objectives of the paper are twofold: 1. To develop a model of interindustry technology flows based on Canadian industry between 1978 and 1989; to identify both sources and users of new technology and to examine their evolution over time. 2. To explore whether or not the rate of change in technology flows can be correlated with the rate of change in input-output flows of goods. Taking into account the interindustry flows increases our understanding of the sources of information for innovation and its diffusion, and also the effects of technological change on productivity. The author finally explores the relationship between changes over time in the technology matrix and the input-output matrix which includes an empirical test. It is suggested that the wealth of information from technology flow matrices indicates that these could become an important analytical tool for the study of technological change.
Published Version
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