ECON 232 Study Guide - Final Guide: Market Power, Marginal Cost, Joseph Schumpeter
Document Summary
Endogenous vs. exogenous technological change: physical and organizational technology fosters. The process of technological change: technique - adoption - adaptation innovation. Recall: tech development can be divided into: (1) macro+micro inventions=>rapid diffusion (2) innovation (3) adoption: entrepreneurial decisions (4) adaption- firm, worker specific. As for macro, examples are electricity and steam power, these are general purpose technology across country, it is hard to keep it quiet, easy to spread out through the world, factories spread quickly, diffuse immediately, too discontinuous changes. As for micro, there are micro inventions and innovation, which can be imitated. This is about how well people find profitable ways of certain products like pc. It is hard to copy adaptation of british, cause one adaptation is so unique that it doesn"t work elsewhere. Therefore, possibility of imitation, is not macro, not gb, not adoption, not adaptation, but only innovation. Frontier technology and rapid tech development promote rapid transition to meg.
