Bridging the Gap Between Technological Change and Economic Modelling

Within the framework of the FRAME project, we are happy to announce the upcoming Research Training event. The event will be held from 18 to 19 October at the Centre for European Economic Research (ZEW), Mannheim. Its main objective is to offer participants the opportunity to learn about new methods and models for assessing the impact of public research and innovation activities on innovation, productivity growth and unemployment.

The focus of the event is the development of a new generation of Dynamic Stochastic General Equilibrium (DSGE) models. The DSGE model incorporates important new features: it distinguishes between investment by companies in R&D and their investment in technology adoption; it allows public R&D and innovation activities not only to enhance the productivity of private R&D, but also to facilitate the diffusion of technologies to private companies.

The purpose of the FRAME Research Training event is to propose an in-depth introduction to the baseline model and related extensions (structural effect on several sectors; multiple countries; endogenous skills). These extensions make it possible to investigate the effects of different policy interventions over the short, medium and long term. This set of models will be accompanied by new insights about the impact of technological change on the labour market. In this regard, new estimation techniques to measure Total Factor Productivity in Europe and a new approach to deepen the understanding of the cyclical unemployment variations with discount factors will be presented. Topics may be wide-ranging, from a macro-perspective: the effect of public R&D on private innovation, endogenous accumulation of human capital, technological adoption in a multicounty  setting, and structural change and shift across sectors, to the subject of technological change and unemployment.