ABSTRACT
This chapter examines technological and regional determinants of the technological efficiency of company production by testing the relationship between technology-related inputs/regional variables and the three technological efficiency measures, i.e., total factor productivity, neutral technological progress, and economies of scale. Production and labor productivity growth results from the changes in levels of internal inputs and regional factors and technological efficiency of using these inputs—the amount of increase in output for a given increase in inputs. The frequently used measures of technological efficiency are total factor productivity, economies of scale, and neutral technological progress, that can all be derived from output elasticities. The chapter investigates technological and regional determinants of three efficiency or productivity measures. Since these measures are often referred to as productivity, the researcher follows the convention and uses productivity to mean technological efficiency of using the inputs.
