ABSTRACT
This chapter focuses on structural and technological change in the European Periphery (EP). It deals with the way a country lagging far behind the technological frontier can converge with the technological and economic leaders. The basic rationale of the structural change approach refers to a long-term, widespread change of the fundamental structure, rather than change on a micro scale or of short-term output and employment. However, as GDP grows and structural change occurs, the effects of the latter on the former become less significant, unless a technological change occurs. This view is somewhat different from the perspective of structural reforms, which originated with supporters of the "supply-side economics". The change in the technological pattern in the Portuguese economy did not immediately translate into benefits at the economic growth level. In fact, there was a narrowing of the gap between Portugal and the OECD average in all science and technology indicators.
