Parente and Prescott analyze barriers to technology adoption as a key factor in economic development. They propose a model where technology adoption and barriers to such adoption determine income disparities across countries. The model is calibrated to U.S. balanced growth observations and Japan's postwar development. The authors argue that differences in technology adoption barriers explain the large income disparities between countries. They find that significant reductions in these barriers can lead to rapid development, as seen in Japan's postwar miracle. The model shows that technology adoption barriers vary across countries and over time, and that these barriers influence the cost of adopting new technologies. The authors emphasize that differences in these barriers account for the disparity in income levels across countries. The model is consistent with both the large income disparities observed and the rapid development experiences of countries like Japan, South Korea, and Taiwan. The paper concludes that technology adoption barriers are a crucial factor in economic development and that further research is needed to understand why these barriers vary across countries and over time.Parente and Prescott analyze barriers to technology adoption as a key factor in economic development. They propose a model where technology adoption and barriers to such adoption determine income disparities across countries. The model is calibrated to U.S. balanced growth observations and Japan's postwar development. The authors argue that differences in technology adoption barriers explain the large income disparities between countries. They find that significant reductions in these barriers can lead to rapid development, as seen in Japan's postwar miracle. The model shows that technology adoption barriers vary across countries and over time, and that these barriers influence the cost of adopting new technologies. The authors emphasize that differences in these barriers account for the disparity in income levels across countries. The model is consistent with both the large income disparities observed and the rapid development experiences of countries like Japan, South Korea, and Taiwan. The paper concludes that technology adoption barriers are a crucial factor in economic development and that further research is needed to understand why these barriers vary across countries and over time.