General Purpose Technologies
Economists have come to use the term ‘general purpose technology’ (GPT) to describe technological advances that pervade many sectors, improve rapidly, and spawn further innovations. This article addresses the concept of a GPT by example, showing the extent to which electricity and information technology might qualify as members of this special class of inventions, as opposed to more ordinary ones.
KeywordsDiffusion of technology Electricity General purpose technologies Growth, models of Information technology and economic growth Innovation Intertemporal substitution Patents Productivity growth Skill premium Technical change
The author acknowledges financial support from the National Science Foundation.
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