What does “technical” and “technological” change mean?
Technical change:
Change in the amount of output produced from the same inputs
New goods and services
New inputs in production process
New methods of producing goods and services
New ways of operating and managing organizations
Technological change
Innovations in products and production processes
What does “localized technological change” mean?
The change in technology does not affect the entire process of production
but just the techniques currently being used
What types of technological changes can we observe? (capital-labour-curves)
What is the difference between “adoption” and “diffusion” of a technology?
Adoption is a process of selecting a product for use by an individual or organization
Diffusion is a process by which an innovation is communicated through certain channels over time among the members of a social system
What do we mean by “innovation”?
Commercialization and application of an invention of a process or product that meets user or market needs
What are the drivers of an innovation?
Depends on whether the innovation involves products or processes
Market pull
Technology push
Profit matters
Explain neutral technical change
Explain labor augmenting technical change
Explain capital augmenting technical change
Define Invention
Process of creating a new idea or method that might be patented or not
Radical innovation
Definition
New entrants and new technologies displace incumbent firms, existing products or processes —> Creative destruction
Incremental innovations
Incumbent firms gradually improve existing technologies through “learning by doing” or “learning by using”
Changes of technology system
Combination of radical/incremental technology innovations combined with organizational changes resulting in the creation of entirely new sectors
Changes in the techno-economic paradigm
Large-scale, revolutionary changes carried by new technology systems —> Kondratiev long waves
Creative accumulation
Incumbent firms
look for new technologies and
try to integrate them into functioning processes and products together with the established ones,
thus producing “evolving knowledge”
Explain the K-waves
What does process innovation might involve?
Technique of production
Scale of production
Location of production
A-U model
What does it explain?
Grafic: Innovation rate over time
patterns of industrial innovation
Technology push (Schumpeter) VS market pull (Schmookler)
How can innovation be measured?
Global Innovation Index (GII)
The Innovation Input Sub-Index is the average of the first five pillar scores
The Innovation Output Sub-Index is the average of the last two pillar scores
The overall GII is the average of the Input and Output Sub-Indices
The Innovation Efficiency Ratio is the ratio of the Output Sub-Index over the Input Sub-Index
Last changeda year ago