ABSTRACT
This chapter studies economic and technological differences separately, but ultimately, they manifest jointly. Good economic conditions strongly correlate with good technological conditions. The eco-techno distance is a term that is proposed to encapsulate both types of distance and simplify analysis. Economic distance is grounded in differences in demand factors, while technological distance is based in differences in production factors across countries. For instance, differences in demand conditions stem from differences in consumers' income, saving capacity, access to credit, and product familiarity. A country's infrastructure includes all necessary elements to support production and marketing. The quality of an infrastructure directly affects economic growth potential and the ability of a company to engage effectively in business. Among the many indicators used to describe the economic and technological environments of countries, the chapter focuses on development levels and on infrastructure, resources, and intellectual property.
