Synergistic small worlds that drive technological sophistication.

ABSTRACT: It is a well-known fact that economic growth goes hand in hand with improvements in technological sophistication. While critical to such sophistication, the nature and underlying structure of the input interactions taking place inside production processes remain opaque, at least in the study of large systems such as industries and entire economies. We develop a method to quantify the degree of input complementarity in production processes form input-output data. We propose that the information-theoretic concept of synergistic information is analog to economic complementarity and exploit this link to create a data-driven approach that does not require the ex ante assumption of production functions. In contrast to alternative empirical approaches, our method is able identify input-input inte

SUBMITTER: Rajpal H 

PROVIDER: S-EPMC12001794 | biostudies-literature | 2025 Apr

REPOSITORIES: biostudies-literature