Technological Gap Theory

Discipline: Economics

Technological gap theory proposes that changes in international trade are dictated by the relative technological sophistication of countries.

Some nations, such as the US or Japan, have a competitive trade advantage because of their ability to innovate. Over time, other countries will bridge a particular gap although the really innovative will have opened others.

Also see: product life-cycle theory

Source:
A Heertje, Economics and Technical Change (London, 1977)

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