Transfer of Technology: Competition or Cooperation

Looking at an economy as consisting of several layers of techniques gives us a way to spell out the implications of macroeconomic situations to micro levels. For instance, if macroeconomic consideration point to reducing total employment, a map of the layers of techniques of the economy should be able to pinpoint the firms of different regions that are likely to be effected. In such cases, to be able to delineate the effects of extra final demand of the new investment on the production and employment in the economy, we require best input-output and labour coefficients instead of the average ones that are at present computed worldwide. Similarly, for capacities going out of production either because of the lack of demand, or obsolescence, we want to have the knowledge of the least efficient techniques of production for finding out their economic implications [Azid (2002)].