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Technological Breakthroughs and Productivity Growth Author info | Abstract | Publisher info | Download info | Related research | Statistics Edquist, Harald () (Dept. of Economics, Stockholm School of Economics)
Henrekson, Magnus () (Dept. of Economics, Stockholm School of Economics)
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This study consists of an examination of productivity growth following three major technological breakthroughs: the steam power revolution, electrification and the ICT revolution. The distinction between sectors producing and sectors using the new technology is emphasized. A major finding for all breakthroughs is that there is a long lag from the time of the original invention until a substantial increase in the rate of productivity growth can be observed. There is also strong evidence of rapid price decreases for steam engines, electricity, electric motors and ICT products. However, there is no persuasive direct evidence that the steam engine producing industry and electric machinery had particularly high productivity growth rates. For the ICT revolution the highest productivity growth rates are found in the ICT-producing industries. We suggest that one explanation could be that hedonic price indexes are not used for the steam engine and the electric motor. Still, it is likely that the rate of technological development has been much more rapid during the ICT revolution compared to any of the previous breakthroughs.
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Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number
0562.
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Length: 63 pages
Date of creation: 24 Aug 2004Date of revision:
04 Apr 2005Publication status: Published in Research in Economic History, 2006, pages 43.Handle: RePEc:hhs:hastef:0562Contact details of provider: Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden Phone: +46-(0)8-736 90 00 Fax: +46-(0)8-31 01 57 Email: Web page: http://www.hhs.se/ More information through EDIRC
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Keywords: electrification ; general purpose technologies ; ICT revolution ; productivity growth ; steam power ; Technological breakthroughs ; Other versions of this item:
Find related papers by JEL classification: N10 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - General, International, or Comparative O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Edquist, Harald, 2005.
"Do hedonic price indexes change history? The case of electrification ,"
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