Very Important Final Paper-7pages
ZachFinken
2.pdf
THE KNOWLEDGE ECONOMY
2.1 INTS 2370
Mazzucato: Technology, Innovation, and Growth
• Inputs from Capital & Labor historically account for just 10% of growth • The other 90%? Technological change or ‘measure of ignorance’? • Evolutionary economics: dynamic increasing returns to scale • Systems of innovation: – 'the elements and relationships which interact in the production, diffusion and use of new, and economically useful, knowledge' (Lundvall 1992)
– 'the network of institutions in the public and private sectors whose activities and interactions initiate, import, modify and diffuse new technologies' (Freeman 1995)
Mazzucato: Six Myths of Innovation-‐led Growth
1. Innovation is about R&D. Other conditions make R&D productive 2. Small is beautiful. Young high-‐growth firms, actually 3. Venture capital is risk loving. Can be speculative and short lived 4. We live in a knowledge economy – just look at all the patents!
Patents to appear innovative and then block new research 5. Europe’s problem is all about commercialization. Limited R&D is
the real answer 6. Business investment requires ‘less tax and red tape’. Taxes and
government provide many new innovations but benefit others
Innovation: Declining or Recombining
• Innovation is everything. There is only so much resource for extraction and unskilled labor leads to diminishing returns (or obsolescence)
• Role of general purpose technologies: they should be pervasive, improving over time, and able to spawn new innovation
• Recombination of existing ideas… the challenge then becomes parsing good ideas from the bad ones
• Innovations get used up. No they don’t!
The Chips are Down for Moore’s Law
Wireless: The Next Generation
Why Software is Eating the World
The Thing About Cycles
