4.8 Technological change Flashcards
1
Q
Invention
A
the creation of a new product or process
2
Q
Innovation
A
new products and production processes that are developed into marketable oods or services
3
Q
Impact
A
- firms and industries
- methods of production
- productivity
- efficiency
- lead to dev of new products + markets, destruction of existing markets
4
Q
Impact on LR costs
A
are reduced, reflecting dynamic efficiency
5
Q
Effect on markets
A
make some more competative
6
Q
creative destruction
A
where tech change leads to development of new ‘disruptive’ products that render existing products obsolete
