Contents
Introduction
Productivity Improvement
Introduction
Productivity Improvement
After of installation
-Enhance productivity through increase of output Hence, improvement in technological change will enhance productivity >>> produce more outputs >>> affect economic growth
= 1
Y : output per worker A : productivity or technology K : physical capital per worker h : human capital per worker
Transfer of Technology
Technology VS conventional factors of productions Its peculiar character, too, is that no one possesses the less, because every other possesses the whole of it. He who receives an idea from e, receives instruction himself without lessening mine; as he who lights a taper at mine, receives light without darkening me. Thomas Jefferson.
I.
Profit Consideration o o Invention leads to supernormal profits Produces the same products but lower price
I.
Profit Consideration
How much of an advantage a new invetion will confer
II.
Creative Destruction o Process by which new inventions create profits for firm, and these serve as the incentive to engage research ( Joseph Schumpeter ) o The double-edged nature of the process o Example : Luddites 19th century and Microsoft in 2000