Technological intensity and local socio‐economic development

This study aimed to empirically analyse the relationship between technological intensity profile and local socio‐economic development, using the theories of path dependence and microregional agglomeration economies. We applied the technique of linear hierarchical modelling with data from 645 municipalities in Brazil. Our results demonstrated that current municipal socio‐economic development could be explained by the local technological path itself but even more so by the technological intensity of the microregion. This article's contribution lies in its union of two theoretical perspectives and its adoption of a quantitative approach, allowing for the analysis of municipal development at two levels, local and microregional.