This 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 of economic development? 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 made by the 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, eventually also in the statistics.

Something new under the sun - The role of new technologies in a growing economy

MARIUTTI, Gianpaolo
2007-01-01

Abstract

This 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 of economic development? 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 made by the 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, eventually also in the statistics.
2007
Schumpeterian Economics; Input Output Analysis; Technical change; Economic Dynmics; Structural change
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/321332
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact