Summary of the Discussion

Abstract

The discussion suggested several directions in which to develop a theory of long-run technical progress as sketched by Harry Johnson in the paper. Historical as well as contemporary examples were given to illustrate the importance of technical breakthroughs for the global location of economic activity. Attention was given to the effects of warfare and of the military sector in developing new technology, and to nations as social groups initiating major technical innovations. Governmental attempts to close technological ‘gaps’ and the practice of applying Western technologies in LDCs were emphasised. The discussion also treated the interaction between technological change, geographic factor movements and migration policies. Finally, it was argued that the effects on trade patterns of economies of scale should be analysed. This session was chaired by Michael Michaely.