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The creative response in economic development: the case of information processing technologies in US manufacturing, 1870-1930

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  • Andreas Reinstaller

    ()
    (MERIT - Maastricht University)

  • Werner Hölzl

    ()
    (Vienna University of Economics & B.A.)

Abstract

This paper presents a theoretical framework along "Classical" lines in which Schumpeter's concept of "Creative Response" is linked to a theory of induced innovation and the concept of technological regimes. We devote particular attention to the role of indivisibilities between factors of production. On the basis of this framework, we study the adoption of early information technologies, such as typewriters, calculators or Hollerith machines in US manufacturing in the period between 1870 and 1930. We show how the presence of a distinct bias in technical change in US manufacturing led to the opening of a window of opportunity for early information technologies, and how the presence of this bias influenced the technological search and adoption process of firms and how this found its final reflection in the rules and heuristics of the new regimemulation is found.

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Bibliographic Info

Paper provided by Vienna University of Economics Research Group: Growth and Employment in Europe: Sustainability and Competitiveness in its series Working Papers with number geewp15.

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Date of creation: Jun 2001
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Handle: RePEc:wiw:wiwgee:geewp15

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Keywords: Technological regimes; systemic innovation; adoption of technologies; path dependence; information technology 1870-1930;

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  1. Paul David & Gavin Wright, 1999. "Early Twentieth Century Productivity Growth Dynamics: An Inquiry into the Economic History of Our Ignorance," Economics Series Working Papers 1999-W33, University of Oxford, Department of Economics.
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  14. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May.
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