Something new under the sun. The role of new technologies in a growing economy
AbstractThis paper inquires into radical innovations and into their role to promote economic growth. Can an economic system grow only in quantitative terms, or the process of structural change, that underlines the emergence of new technologies, is an essential ingredient? To put it philosophically: is there something new under the sun of a growing economy or not? The paper attempts to deal with this quest both in terms of analysis and in terms of evidence. In terms of analysis, it conceptualizes the taxonomy of innovation, proposed by Chris Freeman (1994), in an input-output framework. It shows how the rate of growth will eventually peter out without the essential contribution of new sectors in the economy. In terms of evidence, it brings the case of electronics to study the impact of a new technology in changing the economic structure and the knowledge structure of the UK and US economy between the 1970s and 1990s. The changes are profound, and they may help to start explaining a sort of reverse of Solow’s paradox. Namely, computer are everywhere, now also in the statistics of the tertiary sector.
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Bibliographic InfoPaper provided by University of Verona, Department of Economics in its series Working Papers with number 45.
Date of creation: Dec 2007
Date of revision:
radical innovations; structural change; productivity; economic growth; new sectors.;
Find related papers by JEL classification:
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-19 (All new papers)
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