Dear Rana.

The dummy approach you are working on is usefull if you want to know if a certain method is present or absent. Say during a trial or period a new method or machine was introduced, then you can use "ones" when its is present, and "zeroes" when it is absent.

In general, capturing technological effect on GDP (Output) is done in a log transformed model, whose coefficients have implications for economies of scale, such as in a Cobb-Douglas or CES specification. A major contribution in the 20th century was the residual method of Robert Solow (MIT Laureate Professor). More modern approach tries to dis-aggregate the residual into technology, human capital, education, and health etc. You can find these discussions in an intermediate book on growth theory, macroeconomics or trade.

A good reference is Determinants of Economic Growth by Robert Barro.

Regards,

Bogdan

A dummy variable is usually used when the variable is of yes or no variety, i.e. binary. But continuous variables cannot be represented by a dummy. For example, if you are testing if the occurrence of floods have an impact on output, then flood can be represented by a dummy: taking value 1 when flood occurs and zero otherwise. However, if your hypothesis is that output depends on the level or intensity of the flood then it becomes a continuous variable and cannot be represented by a dummy. You have to work out a measure of the level or intensity.

There are well established proxies to determine the impact of trade (openness) on economic growth. For example, the sum of exports and imports as a ratio of the GDP. Both cross-sectional and time-series data are available from various sources. I don't a dummy variable is appropriate to capture the impact of trade on economic growth.

As far as I understand the question, you are talking about a specific Technology. In this case, a dummy would be ok. Nonetheless, if possible, I would recommend the respective Technology by an ordinal variable. Otherwise, if you are testing the effect of trade openess, I would recomment Import/Export to GDP or maybe manufactured goods in Export or something like that. Also the membership in a regional Integration Zone or FTA may be a Proxy for that.

thank you very much so nice of you all

You may also think about taking values from the Global Innovation index...

I think RGDP should be used and I can see a possible step-dummy variable (step dummy 0 0 0 0 1 1 1 1 )

You can use the variable trade openness to measure the impact  which is defined as the (Total Exports + Total Imports) / GDP 

I would try to add an ITU index as a variable. Still not a binary one. 

Please check complexity index introduced by hausmann and hidalgo

Yes, you can include technology as a dummy variable in a regression model to measure the impact of trade openness on economic growth. One article I found on Sage Journals suggests that the absorptive capacity and adoption of new technology support the idea of an increasing impact of trade openness on economic growth and HCA development.