4.8 - TECHNOLOGICAL CHANGE
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- process of creating new product or new way to make product.
- act of improving or contributing to existing products.
- can result in improvements in efficiency and productivity, could lower Cop for firms. quality and quantity of goods and services might improve. can lead to development of new products new markets and may destroy existing markets. creative destruction linked to technological change. Small and Medium Sized Enterprises (SMEs) important for creating competitive market. create jobs, stimulate innovation and investment and promote competitive environment. Schumpeter proposed idea of ‘creative destruction’. new entrepreneurs are innovative, challenging existing firms. more productive firms grow, whilst least productive forced to leave market. results in expansion of economy’s productive potential.
- monopolies don't have incentive to innovate as have no competition. often inefficient, costs higher than could be. oligopolies have higher incentive to innovate as they are earning supernormal profits and trying to get ahead of competitors. technological change is quite fast in oligopolies.
- INVENTION
- INNOVATION
- TECHNOLOGICAL CHANGE AND PRODUCTIVITY
- TECHNOLOGICAL CHANGE AND MARKET STRUCTURES
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- a level economics - individuals, firms, markets and market failure (4 - PRODUCTION, COSTS AND REVENUE) Slide Set on 4.8 - TECHNOLOGICAL CHANGE, created by Hifsah Qayyum on 15/09/2020.
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