Chapter 4: Technological Change – ‘Gales of Creative Destruction’ Flashcards

1
Q

What role does technology play in shaping outcomes?

A

Technology is not deterministic but acts as a facilitating or enabling factor, providing the potential for certain changes and developments. This means that technology itself does not determine how it will be used or the outcomes it will bring.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Is technological change influenced by social and institutional factors?

A

Technological advancements do not happen in isolation; they are deeply influenced and shaped by the social and institutional contexts in which they emerge and are adopted. Social norms, cultural values, and institutional arrangements all play significant roles in how technology is developed, adopted, and used.
Example: The introduction of electric cars represents a technological change. However, its success and widespread adoption can be influenced by factors like government policies (incentives for electric vehicle use), charging infrastructure availability, consumer preferences, and societal acceptance of sustainable transportation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is technological change from an evolutionary perspective?

A

Technological change is a form of learning, involving the understanding and improvement of new technologies over time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Does technological change solely rely on inventing new things?

A

No, it also depends on transforming inventions into innovations by successfully implementing and commercializing new ideas.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does the adoption and diffusion of technology involve?

A

The adoption and diffusion of technology is an entrepreneurial evolutionary process, where entrepreneurs recognize the potential of new inventions and introduce them to the market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is required for large-scale technological changes to have a widespread impact?

A

Large-scale technological changes depend on a suitable combination of social acceptance, efficient organizational structures, and advanced technological capabilities.

Example: The adoption of electric cars on a large scale requires not only technological advancements in battery technology and charging infrastructure but also social acceptance of electric vehicles as a viable and environmentally friendly alternative to traditional gasoline-powered cars.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How do radical innovations typically evolve over time?

A

Radical innovations are often introduced in primitive versions and then undergo incremental innovations, leading to improvements and refinements.
Example: The first-generation smartphones had limited features and capabilities compared to modern smartphones. Over time, incremental innovations in hardware, software, and design have led to more advanced and sophisticated smartphones.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does the law of diminishing returns imply in the context of technological change?

A

The law of diminishing returns suggests that as a technology becomes more mature, additional investments may yield diminishing marginal returns.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does the logistic curve represent in trajectories of technological change?

A

The logistic curve represents the growth trajectory of technological changes, showing initial rapid growth followed by a slowing rate of growth as the technology reaches maturity.

Example: In the early stages of a new technology’s development, investment and innovation may lead to significant advancements and growth. However, as the technology becomes more widespread and reaches maturity, further investments may lead to smaller incremental improvements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What happens during each successive Kondratiev wave?

A

During each wave, the center of technological leadership and innovation may shift from one country or region to another, both at the national and micro-geographical scale.
Example: In the past, the United Kingdom played a leading role during the first Kondratiev wave with the Industrial Revolution. Subsequently, the United States emerged as a technological leader during the second Kondratiev wave with advancements in electrical and automotive industries.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the Kondratiev wave theory?

A

The Kondratiev wave theory proposes long cycles of economic growth and contraction, each lasting approximately 50 years.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are information and communications technologies (ICT)?

A

ICT refers to technologies that enable processing, and transmission of information and have become crucial for productivity, power, and global connectivity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is digitalization, and why is it significant?

A

Digitalization is the conversion of analog information into digital format, enabling easy storage, manipulation, and transmission of data. It is significant because it has transformed how information is accessed, stored, and shared.
Example: The shift from printed books to e-books is a manifestation of digitalization, making literature accessible in digital formats that can be easily stored, shared, and searched.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How have social media platforms impacted global communication?

A

Social media platforms like Facebook and Twitter have revolutionized how people connect, share news, and express their opinions on a global scale.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is ‘Moore’s Law,’ and how does it affect computer technology?

A

‘Moore’s Law’ predicts that the number of transistors on a computer chip doubles approximately every 18 months, leading to increasingly powerful and cost-effective computers.
Example: The development of smaller and more efficient computer chips has allowed for the creation of compact and powerful electronic devices like smartphones and wearable technology.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How do circulation technologies contribute to the global economy?

A

Circulation technologies, such as transportation and communication systems, overcome spatial and temporal barriers, enabling global economic activities and connectivity.
Example: Airplanes and the internet have significantly reduced the time and distance required to connect people and businesses across the world.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Transformation of the economic-geographical landscape:

A

Advancements in information and communication technologies have transformed the way economic activities are conducted and have reshaped the global economic landscape.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

circulation technology meaning

A

Circulation technologies refer to a set of interconnected systems and infrastructure that facilitate the movement of both physical goods and information between different locations. Transportation systems and communication systems

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

How did steam power and the use of iron and steel contribute to time-space compression?

A

Steam power revolutionized transportation by providing efficient propulsion for ships and trains. The use of iron and steel in the construction of railways, trains, and ocean-going vessels increased their durability and speed, making long-distance travel faster and more reliable.
The development of steam-powered ships and railways in the 19th century had a transformative impact on global trade. Steamships allowed for faster and more efficient overseas transportation, while railways connected inland areas to ports, facilitating the movement of goods and people. This technological advancement led to significant time-space compression, as it reduced travel times and expanded the reach of trade and economic activity across continents.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

How did the integration of overland and oceanic transport networks contribute to time-space compression?

A

The integration of overland and oceanic transport networks allowed for seamless movement between different regions and continents, further compressing geographical distances. It connected previously isolated areas, enabling efficient and faster travel across land and sea.

The construction of the Transcontinental Railroad in the United States in the 19th century is an example of the integration of overland and oceanic transport networks. The completion of this railroad linked the Atlantic and Pacific coasts, significantly reducing travel time between the eastern and western parts of the country. This integration facilitated the movement of goods and people from coast to coast, contributing to time-space compression within the United States.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How did the combination of steam-powered ships and railways contribute to global economic expansion in the 19th century?

A

The rapid expansion of British colonial trade in the 19th century was facilitated by the combination of steamships and railways. Steamships improved the speed and reliability of overseas trade routes, while railways connected British ports to the hinterland, allowing for the movement of raw materials and manufactured goods to and from industrial centers. This integration played a vital role in the growth of the British economy and its global trade network during that era.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What impact did the introduction of jet aircraft have on individual travel and multinational corporations?

A

The introduction of jet aircraft enabled unprecedentedly rapid individual travel over vast distances. For multinational corporations (TNCs), this facilitated the coordination and control of geographically dispersed operations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

When did the rise of multinational corporations and commercial jets occur?

A

The rise of multinational corporations and commercial jets took place in the 1950s.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Apart from individual travel, how did jet aircraft impact the movement of certain freight?

A

Jet aircraft revolutionized the movement of certain freight, particularly goods with high value-to-weight ratios and perishable goods for export.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is containerisation, and how does it impact the movement of heavy and bulky freight?

A

Standardized containers. It simplifies transshipment from one mode of transport to another, making the process more efficient and cost-effective.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What are some issues created by containerisation?

A

Containerization has led to some challenges, such as port congestion due to the limited capacity of ports to handle large vessels, especially ultra-large container ships like the Triple-E. Additionally, there is an uneven time-space convergence, with some regions experiencing relative shrinkage, while major economic hubs are converging, pushing other areas further into the periphery.
- City C and City D, which are smaller and less developed compared to City A and City B. While they also benefit from improved transportation, they may not have as many direct flight options or high-speed train connections. As a result, it takes longer to travel between City C and City D than between City A and City B. This shows an uneven time-space convergence, as some regions experience relative shrinkage (like City A and City B), while others may still face limitations in connectivity and development (like City C and City D).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Q: How does ‘radical’ knowledge creation occur across firms?

A

A: ‘Radical’ knowledge creation often involves interactive processes where different firms collaborate and pool their expertise, resources, and knowledge to develop innovative products or solutions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Q: What is the ‘National Innovation Systems’ approach?

A

A: The ‘National Innovation Systems’ approach emphasizes the coordination of various actors, including government agencies, research institutions, and private firms, to foster innovation and knowledge creation at the national level.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Q: According to Adam Smith, how does knowledge creation contribute to economic growth?

A

A: Adam Smith’s theory highlights the importance of division of labor and specialization, which lead to increased productivity and knowledge creation, thus driving economic growth.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Q: How does market extension contribute to the self-reinforcing process of knowledge creation?

A

A: Successful innovation and market expansion allow firms to generate more resources, which they can invest in further research and development, leading to more knowledge creation and innovation, creating a self-reinforcing cycle.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Q: What challenges arise due to the dispersion of knowledge among firms?

A

A: The dispersion of knowledge can create cognitive distance, making it challenging for firms to cooperate or collaborate effectively with each other.

32
Q

Q: Why is striking a profitable balance crucial for firms in the context of knowledge creation?

A

A: Firms must find a balance between seeking external knowledge variation through collaborations and maintaining their relevance in the market. This ensures that the acquired knowledge aligns with their core competencies and business strategies, leading to profitable outcomes.

33
Q

Q: What does ‘Mutual Experience and ‘The Global Village’’ mean?

A

A: It’s the idea that modern communication brings people worldwide closer together, creating a sense of living in a connected village.

34
Q

Q: How does increasing segmentation affect TV messaging?

A

A: TV content is becoming more personalized for different audiences, delivering tailored messages based on interests or location.

35
Q

Q: Explain ‘Customized Cottages Globally Produced and Locally Distributed.’

A

A: It means while we access global information and products, they’re adapted to local preferences, creating a personalized experience.

36
Q

Q: What’s the concept behind ‘Mutual Experience and ‘The Global Village’’?

A

A: It’s the notion that advanced communication makes the world feel like a closely connected village.

37
Q

Q: How does segmentation influence TV messaging?

A

A: It customizes messages to fit specific audience interests or locations.

38
Q

Q: What’s the meaning of ‘Customized Cottages Globally Produced and Locally Distributed’?

A

A: It describes how global content is tailored to local preferences, giving a unique experience despite global connectivity.

39
Q

Q: What are uneven outcomes of technological development?

A

A: Some regions have access to advanced technology, while others lag behind due to various reasons.

40
Q

Q: What does “unequal connectivity in ‘communications space’” refer to?

A

A: It means that different areas have different levels of access to communication technologies like the internet.

41
Q

Q: What does the term “plastic time-space surface” mean?

A

A: It describes the flexible perception of time and space in the digital world due to communication technologies.

42
Q

Q: Who benefits the most from advanced communication technologies?

A

A: Regions that are already economically strong or politically influential tend to benefit the most.

43
Q

Q: How does communication infrastructure reinforce existing patterns?

A

A: Existing powerful regions attract more communication infrastructure, leading to further concentration of connectivity.

44
Q

Q: What is the digital divide in internet access?

A

A: It’s the gap between regions with high internet access and those with limited or no access.

45
Q

Q: How can wireless technologies like mobile phones bridge the digital divide?

A

A: They provide internet access without relying on fixed-line infrastructure, overcoming obstacles like lack of electricity.

46
Q

Q: What is the difference between the “global north” and the “global south” in terms of digital access?

A

A: The global north refers to more developed countries with better access, while the global south includes less developed countries with limited access.

47
Q

Q: How is the digital divide reflected in online platforms like Wikipedia?

A

A: Articles and information on platforms like Wikipedia might be skewed towards regions with better digital access, leaving other areas underrepresented.

48
Q

Q: How does the internet’s importance in knowledge impact the digital divide?

A

A: Limited internet access can hinder educational and economic opportunities in regions with restricted connectivity.

49
Q

Q: How does cloud computing contribute to the digital divide?

A

A: Unequal distribution of cloud infrastructure can lead to disparities in digital services and applications - Online Education Platforms, E-commerce Websites

50
Q

Q: What is meant by “piggybacking of infrastructure” in technology?

A

A: New technologies may use existing infrastructure to expand connectivity, making use of what is already available.

51
Q

Question: How have product life cycles changed due to technological innovations?

A

Product life cycles have become shorter due to rapid technological advancements.

52
Q

Question: What are the three ways firms can maintain or increase product sales?

A

Introduce new products as existing ones become obsolete. Example: Apple’s iPhone releases new models with updated features every year, enticing customers to upgrade.

Extend the cycle of existing products through modifications or new uses. Example: The evolution of the iPad from a personal tablet to a tool used in various industries, such as education and healthcare.

Make changes in production technology to enhance competitiveness. Example: The automotive industry’s shift towards electric and hybrid vehicles to address environmental concerns while maintaining market relevance.

53
Q

Question: Why is efficiency important for a firm’s survival alongside innovation?

A

Efficiency ensures that products can be produced competitively, meeting market demands and maintaining profitability.

54
Q

Question: What are process technology developments in relation to production?

A

Process technology advancements refer to improvements in how products are manufactured, assembled, and delivered.

Example: The implementation of advanced robotics and automation in factories to enhance precision and reduce human labor.

55
Q

Question: How does a product’s trajectory through its life cycle relate to its production?

A

There is a close relationship between a product’s trajectory through its life cycle and how it’s made.
Example: The introduction of flexible manufacturing systems that can quickly adapt to changes in product design and demand, ensuring products remain aligned with customer preferences.’

In simpler words, a product’s trajectory through its life cycle is like its journey from being new and exciting to becoming less popular, and how it’s made is about the steps and methods used to create the product. These two things are connected because how something is made can affect how well it does at different stages of its life.

56
Q

Question: How have production systems changed over time? (5)

A
  • Manufacture: Workshops with people doing specific tasks by hand.
  • Machinofacture: Introduction of machines in factories for more efficient work.
  • Scientific Management (Taylorism): Scientific study to optimize tasks and improve efficiency.
  • Mass Production (Fordism): Assembly line approach with specialized tasks.
  • Flexible and Lean Production: Smart technology and machines working together for efficient and adaptable production.
57
Q

Flexible Specialization meaning

A

This is an approach to production where companies are able to quickly adapt their processes to produce a wide variety of products in smaller quantities. Instead of relying on mass production of a single product, flexible specialization allows for efficient production of diverse products to meet changing consumer demands.

58
Q

Flexible Mass Production

A

This is a modification of traditional mass production methods. While mass production typically involves producing large quantities of the same product, flexible mass production focuses on maintaining the benefits of high-volume production while also allowing for customization and variation. This is achieved through advanced technology and adaptable production processes

59
Q

Trend towards Information Intensity

A

Instead of relying heavily on energy and materials, modern production focuses on using information effectively to streamline processes.

60
Q

Enhanced Flexibility

A

Enhanced Flexibility: Traditional mass production methods are challenged by greater flexibility in three key aspects: product variety, volume, and the speed of changes in production.

61
Q

Shift in Labor Requirements

A

Shift in Labor Requirements: Labor demands have shifted from individual specialization to labor multitasking and teamwork due to the need for adaptable production processes.

62
Q

3D Printing

A

This technology has the potential to revolutionize manufacturing by allowing products to be created layer by layer, enabling customization and reducing waste.

63
Q

Fine Degrees of Specialization

A

Fine Degrees of Specialization: Processes are becoming more fragmented and specialized, allowing for efficient production of specific components.

64
Q

Question: What is the fundamental nature of technological change in terms of learning and knowledge?

A

Answer: Technological change involves a learning process that accumulates and develops relevant knowledge over time.

65
Q

Question: How does the local context influence innovation?

A

Answer: Innovation is shaped by the specific conditions of the local environment, including resources, expertise, culture, and infrastructure.

66
Q

Question: What is meant by “National Innovation Systems”?

A

Answer: National Innovation Systems refer to the combination of social, cultural, political, legal, educational, and economic factors that influence a country’s innovation capabilities.

67
Q

Question: Why do different countries have varying levels of innovation?

A

Answer: Each country’s unique combination of factors in its National Innovation System leads to variations in its innovation capabilities.

68
Q

Question: Does globalization erase national differences in innovation?

A

Answer: While some argue that globalization reduces national distinctions, evidence shows that significant national differences in technology systems still persist.

69
Q

Question: How is innovation often measured?

A

Answer: Patents are commonly used as a proxy for innovation, indicating the recognition and protection of new inventions. Tools like the Global Innovation Index compare the innovation performance of different countries.

70
Q

Question: What are localised knowledge clusters within National Systems of Innovation?

A

Answer: Localised knowledge clusters are concentrations of specialized knowledge and expertise within larger national systems of innovation.

71
Q

Question: What do these localised knowledge clusters represent?

A

Answer: These clusters represent geographic areas where innovation and knowledge creation are concentrated due to the presence of skilled workers, research institutions, and industries.

72
Q

Question: Can you find examples of localised knowledge clusters?

A

Answer: Silicon Valley in the United States is a famous example of a localised knowledge cluster, where numerous high-tech companies, research institutions, and skilled professionals collaborate closely, driving innovation in the technology sector.

73
Q

Question: What factors contribute to the development of an innovative milieu? ( the environment where innovation thrives)

A

Answer: An innovative milieu relies on both tangible and intangible factors, including economic, social, and political institutions, as well as evolving knowledge and conventions.

74
Q

Question: How are local technology clusters typically formed?

A

Answer: Most local technology clusters are the result of historical processes of cumulative growth, where innovations build upon each other over time.

75
Q
A
75
Q

Question: How does a local innovative milieu function?

A

Answer: In a local innovative milieu, there’s a network of untraded interdependencies that fosters innovation. These interdependencies are influenced by historical and path-dependent processes of technological change.

Basically, the history of how things have been done and the changes in technology play a big role in how people work together and innovate now.