Section2 Flashcards
1
Q
What are the long waves of economic development?
A
- Long-term cycles of economic growth driven by major technological changes
- Typically: 1st wave (water/steam power), 2nd wave (steam/railways), 3rd wave (electricity), 4th wave (mass production), 5th wave (information and communication), etc.
2
Q
What is the industry life cycle concept?
A
- Era of Ferment: many product designs, high uncertainty
- Dominant Design Emerges: standard architecture accepted
- Era of Incremental Change: efficiency improvements, fewer competitors
- Eventually leads to saturation or displacement by new technology
3
Q
Where does AI fit in the technology life cycle?
A
- Still in an exploratory phase (no fully dominant design)
- High variety of patents and approaches
- Strong rise in scientific publications since 2010
4
Q
What is a dominant design?
A
- A key design that becomes the standard in an industry
- Reduces uncertainty and guides incremental improvements
- Often emerges after a period of trial and error
5
Q
Why is Switzerland notable in innovation?
A
- Consistently top-ranked in the Global Innovation Index
- High R&D spending (~3.3% of GDP)
- Leads in patents per capita
6
Q
Why do private firms invest in research and development (R&D)?
A
- Scientific knowledge informs inventions
- Absorptive capacity: in-house research needed to benefit from external science
- Attracts talented inventors
- Signals quality to consumers, investors, and regulators
7
Q
What is absorptive capacity?
A
- Ability to recognise, assimilate, and apply external knowledge
- Firms need internal R&D to effectively use publicly available science
- Critical for innovation in rapidly evolving fields
8
Q
What are emerging issues in R&D investment?
(3)
A
- Possible decline in basic research by large firms
- Short-term focus and specialisation
- Shift in R&D spending from science to technology development
9
Q
How does public science affect corporate R&D?
A
- Frontier firms maintain or increase R&D in response to more public science
- Non-frontier firms may reduce R&D, relying on universities and start-ups
- Can widen the innovation gap between leading and lagging firms
10
Q
What is the ‘macro’ story of technology and innovation?
A
- Long-term perspective links major technology waves to economic growth
- Both technical and organisational changes matter
- Shifts in R&D spending and dominant designs shape industrial evolution
