Paper by Gustavo de Souza: “Developing countries rely on technology created by developed countries. This paper demonstrates that such reliance increases wage inequality but leads to greater production in developing countries. I study a Brazilian innovation program that taxed the leasing of international technology to subsidize national innovation. I show that the program led firms to replace technology licensed from developed countries with in-house innovations, which led to a decline in both employment and the share of high-skilled workers. Using a model of directed technological change and technology transfer, I find that increasing the share of firms that patent in Brazil by 1 p.p. decreases the skilled wage premium by 0.02% and production by 0.2%…(More)”.
How to contribute:
Did you come across – or create – a compelling project/report/book/app at the leading edge of innovation in governance?
Share it with us at info@thelivinglib.org so that we can add it to the Collection!
About the Curator
Get the latest news right in your inbox
Subscribe to curated findings and actionable knowledge from The Living Library, delivered to your inbox every Friday
Related articles
Democracy
INSTITUTIONAL INNOVATION
Trust in Federal Government Sinks to New Depths
Posted in October 15, 2026 by Stefaan Verhulst
Collective Intelligence
PEOPLE
In Referees We Trust? How Peer Review Became a Mark of Scientific Legitimacy
Posted in October 14, 2026 by Stefaan Verhulst
Citizen Engagement
PEOPLE
Professionalizing deliberation: a Social Network Analysis of UK climate mini-publics
Posted in October 14, 2026 by Stefaan Verhulst