A procedure to discern the embodied technological content in goods

Abstract

The production of goods and services for final demand may require the use of technological inputs, such as direct spending on research and development (R&D) and other technological services. An economy?s dynamism depends largely on how these inputs shape the production structure. In this work, we implement a computational procedure to obtain the total technological content, both direct and indirect, embodied in the goods available for final demand, including exports. This methodology enables us to categorize productive activities based on their technological content and reveal the underlying structural patterns. We illustrate this methodology?s possibilities using input-output data from the Spanish economy.