INTERSTATE VARIATIONS IN MANUFACTURING GROWTH IN THE U.S.: DUAL ROLES OF TECHNOLOGICAL CHANGE (UNITED STATES

The study of technological change and regional economic growth has traditionally been concerned with process technology only. As an alternative to this approach, the concept of dual roles of technological change has recently been suggested in order to emphasize the importance of product technology and its effect on process technology for long-term regional economic growth.;This study tests an hypothesis that interstate variations in the growth rate of manufacturing output in the United States are determined by the combined rates of change in state process and product technologies. In addition, this study examines (1) the individual relationships between the growth rate of state manufacturing output and the rates of change in state process and product technologies, (2) the regional variations in the rates of change in state process and product technologies, and (3) the regional patterns in state patenting activity and its intensity.;The results of this study confirm the hypothesis for the variables and the time periods selected for the test. In explaining the interstate variations in the growth rate of state manufacturing output, the rate of change in high and intermediate state product technology was found to be more important than the rate of change in low state product technology or in state process technology. The results also indicate shifting core-periphery relationships in the rates of change in state process and product technologies and in state patenting activity and its intensity, and the importance of research and development activities for state patenting activity and its intensity.