The U.S. Inter-Sector Network Dynamics and Its Effects on Technology Adoption

Abstract

In the second half of the twenty century the U.S. economy has gone through important transformations both in terms of production and network structure between sectors but also in terms of technology adoption. In this context, using a network perspective we question how these changes in the inter-sector network structure have influenced the process of technology adoption? In order to answer this question we map Input-Output Use Tables from the period 1945-1995 into a weighted directed network. Among other results, we found clear evidence of global (but not local) network structure effects in the intensity of technology adoption. High network betweenness is associated with a greater appropriation of the technology adoption benefits. Consequently, it incentives the adoption of more sophisticated and productive technologies. On the other hand, high relative network closeness is associated with a weaker appropriation capacity. Consequently, it provides stronger incentives for the adoption of basic and cheaper technologies. The existing tradeoffs and their implications for the technology policy are also considered.