07+Economics+and+Technology+Policy

07+Economics+and+Technology+Policy - SOSC111...

Info icon This preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
    SOSC111   Science, Technology & Society Lecture 7 Economics and Technology  Policy
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Governments need to promote  innovation Because innovation is very important for  economic growth Governments would want to know how  much technological development and  innovation contributes Governments also wish to know how  much they should invest and where they  should put their money…
Image of page 2
Four General  Factors  of  Economic Growth Capital  or Investment:  this typically  increases the productivity of labor.   Commercial Expansion:  expanding  markets   increases economic productivity through  specialization (division of labor) Scale  or Size effects:  typically population  growth increases the market Increases in the stock of human  knowledge :   this includes technology, but it also includes  organization.  Technology and organization  are closely linked in economic development.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
How important is technology  to economic growth? Economists have studied for many years the  inputs to economic development, and they  have found that  capital  (or the growth of  investment) does  not sufficiently explain   why some economies are so dynamic.   Studies of advanced economies show that  50-70% of growth in economic output  in the  long run comes from  technological change
Image of page 4
Economic Theory of Growth An increase in capital per hour of labor brings a movement along the productivity curve PC 0 .
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Model with Technological  Growth An increase in human capital and technological advance shifts the productivity curve upward from PC 0 to PC 1 .
Image of page 6
IT and Growth Investments related to Information  Technology have been key to the rise in  productivity in recent decades http://www.youtube.com/watch?v =xz0WIH1zMRk&feature=related
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Government Roles Governments are usually keen to support  new technology in order to achieve economic  growth. In Hong Kong, the Government established the  Innovation and Technology Commission in 1999 http://www.itc.gov.hk/   Governments influence the creation of  technology through two ways: Passive  measures of indirect encouragement Active  measures with direct encouragement and  intervention
Image of page 8
Passive (Indirect) Measures Laws and Regulations: These attempt to create  the necessary  environment  in which technology  will grow Intellectual Property Rights (patents, copyrights) Standards (e.g. common norms for voltage, plugs) Market reforms (e.g. to make bank loans and stock markets  available) Trade Policies (e.g. encouraging local technological  capabilities by restricting imports) This type of promotion is  indirect , since it will benefit  anyone  who develops technology
Image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Intellectual Property Rights
Image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern