.1. Technological Change and
Economic Growth
Based on the historical genesis of
the development is easy to see that the
technological changes caused economic
improvement of manufacturing
capabilities in Europe, North America
and Japan.
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Technological changes include changes
in production processes or the
introduction of new products in order to
increase output or increasing output from
the same amount of inputs.
The most
significant technological developments
in the modern world took place in
electronics, computers,
telecommunications, aviation industry
and so on. Technological change is a
continuous process of small and large
improvements as evidenced by the fact
that most developed countries achieve
millions of patents. Certainly the most
significant changes made in the militaryindustrial complex, which was later
applied in the civilian sector of
production. Civil technological advances
are less dramatic, but no less impressive
increase its contribution to the living
standards of market economies. From the
standpoint of the neoclassical model of
technological change means that more
output can be produced with the same
inputs of capital and labor, which will
say that technological change is pushing
the boundaries of arbitrary features.
Inventions and achievements not only
ensure stable development, but with a
constant ratio of inputs, wages and
interest rates increase the amount of
output that each unit of output may
(Dimitrijevic / Fabris, 2007). Thus
continuous growth: capital per worker
and output per worker wages (wages) per
worker, while it does not cause a decline
in real interest rates. So real investment
increases the productivity of capital and
neutralize the law of falling profit rates.
It should be noted that some favorable
investment income, and other work.
Agricultural machinery reduce the need
for labor and increase capital
requirements, and therefore, called
"investment-saving work", and they
increase profits relative to wages
(wages). New inventions that reduce
capital needs over the needs of the work
(for example, the introduction of multishift operation) are "saving investment
capital," and they increase wages
(wages) compared to a profit.
