ECON 1010 Lecture Notes - Lecture 9: Emerging Markets, Microeconomics, Comparative Advantage

• School: University of Manitoba
• Department: Economics
• Course: ECON 1010
• Professor: Sarrah Vakili

Document Summary

Lecture 9: government policy and innovation in the economy. The current government places a huge emphasis on the potential value from more innovation across all sectors of the british economy. This is because of the economic gains that follow: Improvements in the competitiveness of uk producers in home and overseas markets. Innovation helps to protect and develop comparative advantage. Higher productivity will keep down unit labour costs against the challenge of low-cost competition from emerging market economies. Innovation can also create many thousands of new jobs even though some jobs may be lost because of the adoption of labour-saving technology. The new jobs emerge in training & other services together with the demand for labour that comes from expanding output to supply an expansion to new markets. There might also be significant social benefits (positive externalities) from innovative behaviour for example the delivery of new health treatments or innovations that provide safer forms of transport.