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Why would we be in a new IR today? 3
Going to clean energy
New tech like ai
New tech rising productivity
What is a general purpose technology?
Technology that can be applied to a variety of uses. Ex. Ai, electricity, computers, steam power
What is the difference between industrial revolution and industrialisation?
Industrial revolution is an episode in which new technology (GPT) becomes widespread. This can start in one country or in different countries.
Industrialisation is a process of transition of an economy towards industrial production. In other words a country adopts industrial technologies.
What are the three industrial revolutions?
The first in the revolution is our starting point. It had quantum leap in productivity gains in comparison to pre-industrial societies. The main sectors that recognise the first textiles and transportation (railways and shipping). The first industrial revolution relied on mechanisation based on steam power derived from burning fossil fuels like cold.
The second industrial solution in terms of energy still relied on fossil fuels but not mainly a shift towards the use of petroleum. In this time cars were invented and underlying technology was the internal combustion engine. There was also a shift towards new sectors of industrial production for instance, the chemical and electron mechanical industries.
We experienced a third industrial revolution after the second world war key technologies involved for instance the use of artificial synthetic materials like plastics and computers. In terms of sectors it is characterised by shift towards ICT information and communication also allowed non-industrial sectors to grow.
What are the consequences of the first IR?
Industrial societies could grow and overcome the Malthusian limits
Transition from an advanced organic economy (AOE) towards mineral energy based economy (MEBE)
Higher life expectancy
What is an invention?
A new scientific discovery
What is an innovation?
The first commercial application of an invention
What is distribution?
The use of innovative commercial applications become widespread
What is imitation?
Copying existing tech technologies
What is productivity?
A ratio between the output volume and the volume of inputs. In other words it measures how efficiently production inputs such as labour and capital are being used in an economy.
That cooperative division of labour is more efficient. Specialisation does increases productivity and productivity feeds economic growth. Think about the pin factory. But Smith and growth will inevitably face limits and even decline
What is labour productivity?
Measures the amount of goods and services produced by each member of the labour force or the output per input of labour
What was Joseph schumpeters model? What’s creative destruction?
Technology is internal to the system. The economic system produces knowledge and innovations that can change the underlying economic system. This led him to formulate the theory of creative destruction new knowledge and technologies destroyed existing techniques and way of production. Creative destruction is caused by process of continuous innovation in which successful new applications of technology destroy older ones.
What were the luddites?
People protesting against the industrialisation by breaking machines and protesting violently.
What were the three main categories of why England was the first to IR?
A) supply factors - labour, capital, technology and resources
B) Demand factors - Demographic growth, increases in trade
C) institutional environment for a growing market - constitutional monarchy, parliamentary democracy, private property rights (patents)
What did Robert Palin think and what was his high wages hypotheses?
When wages are the incentive for producers is capital intensive solutions like new machinery or new technology however when labour is cheap as it is in the case of India for instance producers go for labour intensive solutions this is according to Robert Allen the principal reason why the industrial revolution took place in great britain first.
How did the first and second industrial revolution differ from each other?
The second industrial revolution generally dated from 1870 to 1914 deferred from the first in use of science
The term patent cliff refers to the loss of patent protection for a pharmaceutical drug, leading to the entry of generic competition and often resulting in significant declines in revenue for the original drug manufacturer.
