IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Technological Breakthroughs and Productivity Growth

Author Info

Listed author(s):

Abstract

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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://swopec.hhs.se/hastef/papers/hastef0562.pdf
Download Restriction: no

Paper provided by Stockholm School of Economics in its series SSE/EFI Working Paper Series in Economics and Finance with number 0562.

as
in new window

Length: 63 pages
Date of creation: 24 Aug 2004
Date of revision: 23 Jan 2006
Publication status: Published in Research in Economic History, 2006, pages 43.
Handle: RePEc:hhs:hastef:0562
Contact 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
Web page: http://www.hhs.se/
Email:


More information through EDIRC

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; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
  • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
  • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
  • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:

as
in new window


  1. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
  2. David, Paul A, 1990. "The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox," American Economic Review, American Economic Association, vol. 80(2), pages 355-361, May.
  3. Sch N, Lennart, 2000. "Electricity, technological change and productivity in Swedish industry, 1890 1990," European Review of Economic History, Cambridge University Press, vol. 4(02), pages 175-194, August.
  4. Edquist, Harald, 2005. "The Swedish ICT miracle -- myth or reality?," Information Economics and Policy, Elsevier, vol. 17(3), pages 275-301, July.
  5. John W. Kanefsky, 1979. "Motive Power in British Industry and the Accuracy of the 1870 Factory Return," Economic History Review, Economic History Society, vol. 32(3), pages 360-375, 08.
  6. Edquist, Harald, 2005. "Do hedonic price indexes change history? The case of electrification," SSE/EFI Working Paper Series in Economics and Finance 586, Stockholm School of Economics, revised 29 Apr 2005.
  7. Brent Goldfarb, 2005. "Diffusion of general-purpose technologies: understanding patterns in the electrification of US Manufacturing 1880--1930," Industrial and Corporate Change, Oxford University Press, vol. 14(5), pages 745-773, October.
  8. Atack, Jeremy & Bateman, Fred & Weiss, Thomas, 1980. "The Regional Diffusion and Adoption of the Steam Engine in American Manufacturing," The Journal of Economic History, Cambridge University Press, vol. 40(02), pages 281-308, June.
  9. Crafts, Nicholas, 2004. "Productivity Growth in the Industrial Revolution: A New Growth Accounting Perspective," The Journal of Economic History, Cambridge University Press, vol. 64(02), pages 521-535, June.
  10. Paul A. David & Gavin Wright, 1999. "Early Twentieth Century Productivity Growth Dynamics: An Inquiry into the Economic History of "Our Ignorance"," Oxford University Economic and Social History Series _033, Economics Group, Nuffield College, University of Oxford.
  11. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: U.S. Economic Growth in the Information Age," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
  12. Stephen D. Oliner & Daniel E. Sichel, 2000. "The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 3-22, Fall.
  13. Nathan Rosenberg & Manuel Trajtenberg, 2009. "A General-Purpose Technology at Work: The Corliss Steam Engine in the Late-Nineteenth-Century United States," World Scientific Book Chapters,in: Studies On Science And The Innovation Process Selected Works of Nathan Rosenberg, chapter 6, pages 97-135 World Scientific Publishing Co. Pte. Ltd..
  14. Devine, Warren D., 1983. "From Shafts to Wires: Historical Perspective on Electrification," The Journal of Economic History, Cambridge University Press, vol. 43(02), pages 347-372, June.
  15. Nicholas Crafts, 2004. "Steam as a general purpose technology: A growth accounting perspective," Economic Journal, Royal Economic Society, vol. 114(495), pages 338-351, 04.
  16. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
  17. Jovanovic, Boyan & Rousseau, Peter L., 2005. "General Purpose Technologies," Handbook of Economic Growth,in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 18, pages 1181-1224 Elsevier.
  18. Robert J. Gordon, 2000. "Does the "New Economy" Measure Up to the Great Inventions of the Past?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 49-74, Fall.
  19. Kevin J. Stiroh, 2002. "Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?," American Economic Review, American Economic Association, vol. 92(5), pages 1559-1576, December.
  20. Rosenberg, Nathan & Trajtenberg, Manuel, 2001. "A General Purpose Technology at Work: The Corliss Steam Engine in the Late 19th Century," CEPR Discussion Papers 3008, C.E.P.R. Discussion Papers.
  21. Helpman, Elhanan & Trajtenberg, Manuel, 1994. "A Time to Sow and a Time to Reap: Growth Based on General Purpose Technologies," CEPR Discussion Papers 1080, C.E.P.R. Discussion Papers.
  22. Paul A. David & Gavin Wright, 2005. "General Purpose Technologies and Productivity Surges: Historical Reflections on the Future of the ICT Revolution," Economic History 0502002, EconWPA.
  23. Carolina Castaldi & Alessandro Nuvolari, 2004. "Technological Revolutions and Economic Growth: The “Age of Steam” Reconsidered," LEM Papers Series 2004/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  24. Dirk Pilat & Frank C. Lee, 2001. "Productivity Growth in ICT-producing and ICT-using Industries: A Source of Growth Differentials in the OECD?," OECD Science, Technology and Industry Working Papers 2001/4, OECD Publishing.
  25. Jeremy Greenwood, 1999. "The Third Industrial Revolution," Economic Review, Federal Reserve Bank of Cleveland, issue Q II, pages 2-12.
  26. William D. Nordhaus, 2002. "Productivity Growth and the New Economy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(2), pages 211-265.
  27. Alexander J. Field, 2003. "The Most Technologically Progressive Decade of the Century," American Economic Review, American Economic Association, vol. 93(4), pages 1399-1413, September.
  28. Dorothy S. Brady, 1966. "Output, Employment, and Productivity in the United States after 1800," NBER Books, National Bureau of Economic Research, Inc, number brad66-1, Enero-Jun.
  29. David, P.A., 1989. "Computer And Dynamo: The Modern Productivity Paradox In A Not-Too Distant Mirror," The Warwick Economics Research Paper Series (TWERPS) 339, University of Warwick, Department of Economics.
  30. Stefano Scarpetta & Andrea Bassanini & Dirk Pilat & Paul Schreyer, 2000. "Economic Growth in the OECD Area: Recent Trends at the Aggregate and Sectoral Level," OECD Economics Department Working Papers 248, OECD Publishing.
  31. Charles R. Hulten, 2001. "Total Factor Productivity: A Short Biography," NBER Chapters,in: New Developments in Productivity Analysis, pages 1-54 National Bureau of Economic Research, Inc.
  32. repec:dgr:rugggd:200472 is not listed on IDEAS
  33. Thomas Anderson, 2001. "Changing Patterns and Determinants of Growth," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(3), pages 23-28, October.
  34. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
  35. Martin Neil Baily, 1986. "Productivity Growth and Materials Use in U. S. Manufacturing," The Quarterly Journal of Economics, Oxford University Press, vol. 101(1), pages 185-195.
  36. Nathan Rosenberg & Manuel Trajtenberg, 2001. "A General Purpose Technology at Work: The Corliss Steam Engine in the late 19th Century US," NBER Working Papers 8485, National Bureau of Economic Research, Inc.
  37. Boskin, Michael J, et al, 1997. "The CPI Commission: Findings and Recommendations," American Economic Review, American Economic Association, vol. 87(2), pages 78-83, May.
  38. Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2002. "'Changing Gear' - Productivity, ICT and Services Industries: Europe and the United States," Economics Program Working Papers 02-02, The Conference Board, Economics Program.
  39. Kevin J. Stiroh & Dale W. Jorgenson, 1999. "Information Technology and Growth," American Economic Review, American Economic Association, vol. 89(2), pages 109-115, May.
  40. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
  41. Paul A. David, 2005. "Productivity growth prospects and the new economy in historical perspective," Economic History 0502005, EconWPA.
  42. Alan Greenspan, 1999. "The American economy in a world context," Proceedings 637, Federal Reserve Bank of Chicago.
  43. Broadberry,Steve N., 2005. "The Productivity Race," Cambridge Books, Cambridge University Press, number 9780521023580, October.
  44. Burhop, Carsten & Wolff, Guntram B., 2005. "A Compromise Estimate of German Net National Product, 1851 1913, and its Implications for Growth and Business Cycles," The Journal of Economic History, Cambridge University Press, vol. 65(03), pages 613-657, September.
Full references (including those not matched with items on IDEAS)

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

as
in new window


Cited by:

  1. Pearson, Peter J.G. & Foxon, Timothy J., 2012. "A low carbon industrial revolution? Insights and challenges from past technological and economic transformations," Energy Policy, Elsevier, vol. 50(C), pages 117-127.
  2. Harald Edquist, 2010. "Does hedonic price indexing change our interpretation of economic history? Evidence from Swedish electrification," Economic History Review, Economic History Society, vol. 63(2), pages 500-523, 05.
  3. Delmar, Frédéric & Wennberg, Karl & Hellerstedt, Karin, 2011. "Endogenous growth through knowledge spillovers in entrepreneurship: An empirical test," Ratio Working Papers 165, The Ratio Institute.
  4. Jalava, Jukka & Pohjola, Matti, 2008. "The roles of electricity and ICT in economic growth: Case Finland," Explorations in Economic History, Elsevier, vol. 45(3), pages 270-287, July.
  5. repec:eee:streco:v:42:y:2017:i:c:p:1-12 is not listed on IDEAS
  6. Edquist, Harald, 2005. "Do hedonic price indexes change history? The case of electrification," SSE/EFI Working Paper Series in Economics and Finance 586, Stockholm School of Economics, revised 29 Apr 2005.
  7. Edquist, Harald & Henrekson, Magnus, 2016. "Do R&D and ICT Affect Total Factor Productivity Growth Differently?," Working Paper Series 1108, Research Institute of Industrial Economics, revised 28 Nov 2016.
  8. Szalavetz, Andrea, 2011. "Innovációvezérelt növekedés?
    [Innovation-driven growth?]    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 460-476.
  9. Lee, Minkyu & Heshmati, Almas, 2006. "A Dynamic Flexible Partial-Adjustment Model of International Diffusion of the Internet," Ratio Working Papers 99, The Ratio Institute.
  10. Edquist, Harald & Henrekson, Magnus, 2017. "Swedish lessons: How important are ICT and R&D to economic growth?," Structural Change and Economic Dynamics, Elsevier, vol. 42(C), pages 1-12.
  11. Edquist, Harald & Henrekson, Magnus, 2013. "Product Market Reforms and Incentives to Innovate in Sweden," Working Paper Series 986, Research Institute of Industrial Economics.
  12. Belo, Ana & Fernandes, Silvia & Castela, Guilherme, 2014. "Social Networks' Users: Profiles and Motivations," Journal of Spatial and Organizational Dynamics, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve, vol. 2(3), pages 217-228.
  13. Edquist, Harald, 2013. "Can double deflation explain the ICT growth miracle?," Economics Letters, Elsevier, vol. 121(2), pages 302-305.
  14. van Ark, Bart & Smits, Jan Pieter, 2005. "Technology Regimes and Productivity Growth in Europe and the United States: A Comparative and Historical Perspective," Institute of European Studies, Working Paper Series qt1td1h23k, Institute of European Studies, UC Berkeley.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Access and download statistics

When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0562. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helena Lundin)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.