Demand-pull and technology-push: What drives the direction of technological change?

Demand-pull and technology-push: What drives the direction of technological change? An empirical network-based approach Kerstin Hötte∗ Oxford Martin School, University of Oxford The Alan Turing Institute, London Institute for New Economic Thinking, University of Oxford Faculty of Business Administration and Economics, University of Bielefeld August 1, 2022 Demand-pull (DP) and technology-push (TP. [...] Using a two-layer network of input-output (market) and patent citations (innovation) links among 307 6-digit US manufacturing industries in 1977-2012, I study two mechanisms of TP and DP: (1) TP and DP are between-layer spillovers when demand shocks in the market pull innovation and innovation pushes growth in the market. [...] The results support between- and within-layer TP: innovation spillovers from upstream industries drive market growth and innovation. [...] The results enable a nuanced view on the drivers of technological change and its impact on labor, capital, and productivity. [...] 25 6 Discussion 28 6.1 Demand-pull, technology-push, and the direction of technological change.