Non-parametric diversity indices of technical capability of African countries

Abstract

Academic research often claims that the lack of technical capability undermines Africa's economic growth. Policy decisions based on that claim then recommend technological improvement, where technology is generally treated as a homogenous manna from the heaven. This paper outlines four, and calculates two, broad indices of the diversity of technical capability of 14 African countries based on nine common descriptors of technical capability. It finds technical capability to be heterogeneous both within and across countries, and concludes that performance policies that overlook diversity of technical capability are potentially misleading, ineffective, and perhaps even damaging (growth retarding). © The Author. Journal compilation © African Development Bank 2006.