General purpose technology
From Wikipedia, the free encyclopedia
General purpose technologies (GPTs) describe great leaps of innovation that can affect an entire economy (usually at a national or global level). Unlike traditional technologies, which economists view as a smooth advancement, GPTs are drastic advancements that redefine society. Examples are the steam engine, railroad, electricity, electronics, the automobile and the computer.
[edit] Lag
The introduction of a new GPT to an economy may, before improving productivity, actually decrease it:
- the obsolescence of old technologies and skills
- learning costs
- time required for development of new infrastructure
- readjustment of labor to new industries, causing temporary unemployment
[edit] See also
- General Purpose Technologies and Economic Growth Edited by Elhanan Helpman.
