Technological Change Flashcards
What is innovation
The application of its new knowledge to production
Eg after x rays were discovered engineers were creating x ray machines
What are the 5 main impacts from technological change
Increase productivity
Decrease costs
Increase contestability
Affect method of production
Create new product/services
What is creative destruction
When the creation of nee technologies destroys and replaced old technologies
Examples of creative destruction
Netflix used the new creation of the internet to move to shows and movies online
This replaced old tech such as blockbuster’s rental dvds
EV of creative destruction
Leads to job losses as 25000 blockbusters employees were unemployed
Due to uber joining taxi market, incumbent taxi drivers are now at low wages and less work
