GEM 2014 COORDINATED EXPERTISE - Harvard...
Transcript of GEM 2014 COORDINATED EXPERTISE - Harvard...
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COORDINATED EXPERTISE: Obstacles to the diffusion of knowhow
GEM 2014
Ricardo Hausmann
Director, Center for International Development @ricardo_hausman
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The great acceleration
Maddison 2001: The world economy a milennial prespective, Maddison 2005: Measuring and Interpreting World Economic Performance 1500-2001
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The great divergence x25
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Income disparities across and within countries
Autor, Katz, Kearney 2010
$53,143
$16,463
$53,143
$5,410
US Mexico US India
GDP per capita 2013 (USD, Worldbank)
x 3.2 x 9.8
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Income disparities within and across countries
Autor, Katz, Kearney 2010
$53,143
$16,463
$53,143
$5,410
US Mexico US India
GDP per capita 2013 (USD, Worldbank)
x 3.2 x 9.8
$10,382
$1,228
Odisha Bihar
GDP per capita Richest to poorest state in
India (2011) $36,945
$5,841
Federal District Chiapas
GDP per capita Richest to poorest state in
Mexico (2007)
x 6.3 x 8.5
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It’s technology! But why does it diffuse so slowly?
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What is technology?
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Tools
Codes
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Tools can be shipped
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CODES CAN BE SHARED
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Codes aren’t enough
http://www.pinterest.com/pin/409123947368834188/
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You need know-how Know-how resides in experts.
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Codes have exploded
Source: Buringh & Luiten van Zanden, Journal of Economic History, 2009
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Alexandria 400,000 scrolls
Vatican 1.1 million books
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Library of Congress 23,592,066 books
World Wide Web 14.3 trillion pages
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How is expertise stored? Homo Universalis?
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How long does it take to get a college degree?
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http://en.wikipedia.org/wiki/Durham_University_Library#mediaviewer/File:ExamInCosin.jpg http://thefw.com/99-year-old-man-graduates-college/
Then
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http://en.wikipedia.org/wiki/Durham_University_Library#mediaviewer/File:ExamInCosin.jpg http://thefw.com/99-year-old-man-graduates-college/
Then
Now?
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The growth of Harvard Speciation of knowledge
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Harvard College, 1636
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Natural Philosophy, 1840
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Biology, 1920
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Biochemistry & Molecular Biology, 1967
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Faculty of Arts & Sciences, 2014
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Schools of Harvard, 2014
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Schools of Harvard, 2014
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Division of knowledge then:
Each profession could make something
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Butcher Candlestick maker Baker
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Division of knowledge now:
Multiple experts are required to create products
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Modern production Requires bringing together many different experts
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The Scrabble Theory of economic development
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If you have one letter… You can’t write many words.
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If you have three letters…
You can write four words
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If you have four letters…
You can write nine words
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With 10 letters…
You can write 595 words
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Evidence of the connection between the diversity of inputs
and that of outputs
Hidalgo, Hausmann (2009) PNAS 106(26):10570-10575
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The United States
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We can measure “letters” That is, how many capabilities a country has
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What’s new?
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Specificity The first consequence of Scrabble
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Human capital Are we more like Play-Doh or Scrabble pieces?
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Human capital is specific How large are the labor markets on which workers search?
Neffke/Hidalgo/Otto/Weyh 2013
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Speciated expertise The German labor market as a network of
human capital linkages (1998-2008)
Neffke/Hidalgo/Otto/Weyh 2013
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Acquiring new letters
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Moving knowledge into our brains is hard work.
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It’s often easier to move the brains
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Diffusion through mobility The second consequence of Scrabble
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Products diffuse through migrants
Bahar and Rapoport (2014)
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Products diffuse to neighbors
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The country space
Bahar, Hausmann and Hidalgo (2014)
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Diffusion of industries by entrepreneurs Evidence from Sweden
Neffke/Hartog/Boschma/Henning (2014)
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The diffusion of industries: workers Setting up new industries in East Germany depends on
finding experienced workers in West Germany.
Hausmann, Ott and Neffke (2014)
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Colombia Matté Hartog: n Colombia
pioneering requires mobility of experts
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Our own research: Albania (Ljubica Nedelkoska)
Return migration to Albania after collapse of Greek economy: For every percentage point increase in return migrants, local wage growth went up
3.1% (2.6% for low skilled, 4% for high skilled)
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German émigrés and the rise of U.S. science
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Moser, Voena and Waldinger (AER 2014)
German Jewish émigrés revolutionized U.S. science and innovation: U.S. invention increased by
almost a third after 1933 in the field of the émigrés vis a vis fields that did not benefit directly from émigrés.
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Brain drain? Or brain circulation?
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Mexican return migrants (Dario Diodato)
Doubling the number of return migrants with industry experience in US raises growth rate of local industries by about 6%
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Complementarity From letters to words
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Specificities lead to strong interdependence
among experts
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It takes a village
In-air hospitality Flight control Airplane mechanics
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plant educational
co-worker pairs
COMPLEMENTARITY: which educations often work together?
SIMILARITY: which educations can substitute for one another?
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plant
SIMILARITY: which educations can substitute for one another?
COMPLEMENTARITY: which educations often work together? educational
co-worker pairs
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Complementarity
Who are your complements?
Similarity
Who are your substitutes?
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Tenure How much longer do people stay with the same employer?
Wages How much more do people earn?
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Complementarities are up But not for everyone
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Rise of the college wage premium
Autor, Katz, Kearney 2010
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Accessing the kilo-personbyte economy of
Bogotá
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Going to work is a pain
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Even with good infrastructure
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Bogotá has tried to improve
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If going to work is too costly in time and money…
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People end up in the low-productivity,
1-personbyte economy
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Business travel as a way to access the
kilo-personbyte economy of the world
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Policy Implications
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Policy implications • Education vs. vocational training: Germany • On the job training: Subsidized internships: South Africa • External immigration
• Venezuela ‘80: 6% of population, 50% of entrepreneurs • Diasporas – Israel, Joinville - Brazil, Albania? • Backward regions and Internal migration: Chiapas • Brain circulation: India, Taiwan, Bangladesh, Mexico • Business travel and fairs • Foreign direct investment and ex pats • National conglomerates and joint ventures • Government procurement
• ,
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