TECHNOLOGICAL BREAK-EVEN POINT AND LABOUR PRODUCTIVITY: THEORETICAL AND EMPIRICAL ASPECTS

The proposal of this paper is to analyze the break-even point of technological implementation from a firm, in theoretical and empirical terms. First, I have defined the Technological break-even point by building an analytical framework. The analysis points out that technological implementation is a complex activity and technological gaps among firms depend upon different dynamic of net costs and net benefits generated by new technology. Second, I have verified the significance of technological break-even point by estimating, with an econometric analysis, the labor productivity function of Sylos Labini for Italian regions in the period 1998-2003 for the manufacturing firms. As results show, the technological break-even point is significant.