Is Technical Progress Sectorally Concentrated? An Empirical Analysis for Western European Countries

Abstract

Previous research shows that technical progress at the industry level, measured by sectoral TFP growth, is more localized in continental European countries than in Anglo-Saxon countries. We use EU KLEMS data sets to decompose sectoral TFP for nine European countries by means of a Malmquist approach, in order to separate technical change. Applying Harberger diagrams, we describe the sectoral patterns of technical progress. The analysis reveals that in most European countries technological progress is much more evenly distributed across sectors than TFP.