Theory of technological change and economic growth

The last two centuries have witnessed sustained technological innovation which by historical standards has been unique in two respects: it has been unusually intense and its variation between nations and types of economic activity has been remarkably large. This book surveys the empirical evidence and the numerous theories of technological change and economic growth in an attempt to provide a unified empirical and theoretical framework for interpreting this intensity and variation. Part I deals with the invention-innovation-diffusion process at the level of firms and industries. It seeks to develop the microfoundations for the macro oriented analysis of Part II. Central to that macro analysis are two hat-shaped or bell-shaped relationships. One of these describes the change over time of the innovation rate in the technology frontier area (TFA), the part of the world that is technologically most advanced. The other describes the innovation growth paths in the countries outside the TFA.

The wide empirical microeconomic basis and historical perspec tive of the book places it in the tradition associated with such economists as Schumpeter and Kuznets. However, the book attaches great value to theoretical insight, and this places it in the modern tradition.