Technology and the rise of great powers: how diffusion shapes economic competition.

The article discusses Jeffrey Ding's examination of the relationship between technology and power transitions, challenging the notion that the location of innovation is the primary factor in determining a state's economic dominance. Ding introduces the concept of 'GPT diffusion' (General-Purpose Technologies diffusion), arguing that the ability to spread technologies across various industries is more critical than leading in a specific sector. He analyzes historical examples from the first, second, and third industrial revolutions to illustrate how countries like Britain, Germany, and the United States achieved productivity leadership through effective technology diffusion rather than mere innovation. The article also explores the current US-China rivalry in artificial intelligence, suggesting that the US's superior diffusion capabilities position it favorably in maintaining technological leadership. Overall, Ding emphasizes the importance of human capital and institutional frameworks in leveraging technological advancements for economic power. [Extracted from the article]