Strengthening the effects of technological and institutional change on economic growth: Influencing behavior

Technological and institutional changes are recognized for their capacity to stimulate productivity and growth. Their impact, however, depends not only on their direct relatively mechanical effects but also on stakeholder behavioral responses, which are often decisive yet in many cases overlooked. For these innovations to reach their full potential, they must be accompanied by public policies enhancing behavioral responses such as training, access to credit, and insurance mechanisms against climate-related risks. The extent to which these innovations yield benefits depends on whether stakeholders possess or can acquire the knowledge and complementary resources required for each innovation.