Technological Change

Technological Change

Introduction

In anticipation of the outlined future project, I have produced a report on technological change. Technological change is an extraordinary and complex subject, which takes a multiplicity of forms and directions often requiring different angles of vision for different projects, while dependant upon the period in time.

The report discusses the potential contribution of neoclassical, evolutionary and virtuous circle approaches arguing that all theories have their qualities and restrictions in terms of theory and policy. The report will analyse each theory in depth and subsequently give reasoning for the chosen theory prior to a conclusion and relevant recommendations.

Glossary of Terms

Invention

Friedrich von Hayek described for technology, as “the application of science, especially towards industrial or commercial objectives”, which is a particularly single minded and limited definition.

Most individuals would probably associate an invention with something, which is tangible and new. Inventions use new knowledge to create something new, for example an artefact, service or a piece of equipment. Inventions are valuable if they have the potential to enable people or groups to do things in different, diverse and improved ways, or do things, which they would like to do but could not have done before, with the latter often coming from additional resources being made available. They are useful if they can satisfy a need or desire which would otherwise go unmet, but inventions cannot always be put to an immediate beneficial use.

Inventing is frequently an exploratory process, with a large element of risk in terms of finance and time, with an outcome that is uncertain or unknown.. There are failures as well as successes, with less than 2% of inventions ever making profit, although numerous inventions will be non profit, for example any inventions developed by Cancer Research.

What conditions lead to the...