Chapter 4: Technological Change – ‘Gales of Creative Destruction’ Flashcards
What role does technology play in shaping outcomes?
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.
Is technological change influenced by social and institutional factors?
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.
What is technological change from an evolutionary perspective?
Technological change is a form of learning, involving the understanding and improvement of new technologies over time.
Does technological change solely rely on inventing new things?
No, it also depends on transforming inventions into innovations by successfully implementing and commercializing new ideas.
What does the adoption and diffusion of technology involve?
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.
What is required for large-scale technological changes to have a widespread impact?
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 do radical innovations typically evolve over time?
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.
What does the law of diminishing returns imply in the context of technological change?
The law of diminishing returns suggests that as a technology becomes more mature, additional investments may yield diminishing marginal returns.
What does the logistic curve represent in trajectories of technological change?
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.
What happens during each successive Kondratiev wave?
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.
What is the Kondratiev wave theory?
The Kondratiev wave theory proposes long cycles of economic growth and contraction, each lasting approximately 50 years.
What are information and communications technologies (ICT)?
ICT refers to technologies that enable processing, and transmission of information and have become crucial for productivity, power, and global connectivity.
What is digitalization, and why is it significant?
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 have social media platforms impacted global communication?
Social media platforms like Facebook and Twitter have revolutionized how people connect, share news, and express their opinions on a global scale.
What is ‘Moore’s Law,’ and how does it affect computer technology?
‘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 do circulation technologies contribute to the global economy?
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.
Transformation of the economic-geographical landscape:
Advancements in information and communication technologies have transformed the way economic activities are conducted and have reshaped the global economic landscape.
circulation technology meaning
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 did steam power and the use of iron and steel contribute to time-space compression?
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 did the integration of overland and oceanic transport networks contribute to time-space compression?
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 did the combination of steam-powered ships and railways contribute to global economic expansion in the 19th century?
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.
What impact did the introduction of jet aircraft have on individual travel and multinational corporations?
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.
When did the rise of multinational corporations and commercial jets occur?
The rise of multinational corporations and commercial jets took place in the 1950s.
Apart from individual travel, how did jet aircraft impact the movement of certain freight?
Jet aircraft revolutionized the movement of certain freight, particularly goods with high value-to-weight ratios and perishable goods for export.
What is containerisation, and how does it impact the movement of heavy and bulky freight?
Standardized containers. It simplifies transshipment from one mode of transport to another, making the process more efficient and cost-effective.
What are some issues created by containerisation?
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).
Q: How does ‘radical’ knowledge creation occur across firms?
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.
Q: What is the ‘National Innovation Systems’ approach?
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.
Q: According to Adam Smith, how does knowledge creation contribute to economic growth?
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.
Q: How does market extension contribute to the self-reinforcing process of knowledge creation?
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.
