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Technology Choice, Overtaking, and Comparative Advantage *
Author(s) -
Ohyama Michihiro,
Jones Ronald W.
Publication year - 1995
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.1995.tb00065.x
Subject(s) - overtaking , lagging , comparative advantage , economics , position (finance) , porter hypothesis , industrial organization , microeconomics , neoclassical economics , macroeconomics , engineering , productivity , medicine , civil engineering , finance , pathology
This paper argues that the basic concept of comparative advantage, used in international trade theory to establish choices of commodities exported, can also be used to explain choice of technology by a firm. A firm with a current leading position in a given technology may spurn a new technology, which is developed by a currently lagging firm, leading to future overtaking.