Positive Externalities

Market Competition

can provide an incentive for discovering new technology because a firm can earn higher profits by finding a way to produce products more cheaply to create products with characteristics consumers want

Eli Whitney (1765-1825)

invented the cotton gin, but then southern cotton planters built their own seed- seperating devices with a few minor changes in Whitney’s design. When he sued he found that the courts in southern states wouldn’t uphold his patent rights

Thomas Edison (1847-1931)

still holds the record for most patents granted to an individual. His 1st invention was an automatic vote counter and despite the social benefits, he couldn’t find a government that wanted to buy it.

Gordon Gould

came up with the idea behind the laser. He puts off applying for a patent and by the time he did apply, other scientists had laser inventions of their own.

Alan Turing

delivered a paper titled “On Computable Numbers” in which he presented the notion of a universal machine (Universal Turning Machine) capable of computing anything that is computable

Social Benefits

of an innovation account for the value of all the positive externalities of the new idea or product, whether enjoyed by other companies or society as a while , as well as the private benefits the firm that developed the new technology receives.

Positive Externalities

are beneficial spillovers to a 3rd party (s)

DPrivate

is based on the profits the firm receives

Capital Investment

the new investment in anything, is the construction of a new power plant or research in a new cancer treatment, usually requires a certain upfront cost with an uncertain future benefit

Private Rates Of Return

the estimated returns to education go primarily to the individual worker

Social Rate Of Return

if the government is spending taxpayer dollars to subsidize public education, society should expect some kind of return on that spending

Postive Externalities Ex

vaccinations against disease are not only a protection for the individual but the have the positive spillover of protecting others why maybe infected

Carlota Perez

draws on the lessons of past innovations to understand the current state of our economy. She shows that prior technological turning points, such as the proliferation of railroads& emergence of mass production created initial periods of employment & wealth shifting but led to greater well being and economic growth

The Industrial Revolution

downsides were pollution and habitat destruction

Information and Communications & Technology (ICT)

has the potential for significant positive externalities related to the environment. It is shifting many areas of society to digital experiences and services that don’t require fossil fuels or similar natural resources.

Less Consumable Consumption Ex

vehicle sharing, product rental reuse networks and new manufacturing methods