Using newly collected national and
sub-national data, and historical case studies, this paper
argues that differences in innovative capacity, captured by
the density of engineers at the dawn of the Second
Industrial Revolution, are important to explaining present
income differences, and, in particular, the poor performance
of Latin America relative to North America. This remains the
case after controlling for literacy, other higher order
human capital, such as lawyers, as well as demand side
elements that might be confounded with engineering. The
analysis then finds that agglomeration, certain geographical
fundamentals, and extractive institutions such as slavery
affect innovative capacity. However, a large effect
associated with being a Spanish colony remains suggesting
important inherited factors.
Authors and Publishers
Maloney, William F.
Valencia Caicedo, Felipe
World Bank Group (WB)
The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.
Data provider
World Bank Group (WB)
The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.