Final Exam terms Flashcards
Fair Use
Permits limited use of copyrighted material without having to first get permission from the copyright holder
Napster
Peer to peer file sharing internet service that mainly facilitated the sharing of audio files (MP3)
Betamax
One of the first VCR’s
Diffusion
The spread of innovation throughout the economy
- sometimes referred to as adoption
- can occur within a country and/or across countries
Extensive margin
How many people within a country have adopted the technology at a given point in time
Theories that support the S shaped curve
Information and learning
legitimation
cascades
Intensive margin
Captures how intensively a technology is used once it is present in the country
Usage lags
Measure that incorporates the intensive margin
- the amount of kilowatt of electricity per capita produced in Uruguay in 1990 was last observed in the US in 1949
- use late is 41 years
knowledge (absorptive capacity)
New technology brings new production processes, products and services that are not easy to implement. Prior knowledge helps with implementation
Supply side factors of implementing knowledge
Human capital
Adoption history
Geographic interactions
technological distance
Institutions
- Bad institutions may not effectively protect the rights of adopters
- Bad institutions may discourage diffusion because producers may be political or economic leaders that have invested a lot in older technologies
Direct learning
Learning about the actual blueprint in order to reproduce the technology
Indirect learning
Employing specialized intermediate products that have been invented abroad
Migration
When workers gain new knowledge abroad and bring it back to their home country
Trade
Importing products that have technology incorporated into them
