5 Conclusion

This chapter has enabled you to think about the essential role of technological change in determining economy-wide growth and the growth of firms and industries. We have seen that many issues surrounding the new economy are really issues around the dynamics of technological change: rapid increases in productivity, the emergence of many small firms, new products and new processes, and so on. The main lesson of the course has been to provide a historical perspective to the introduction of new technologies. Without such a historical perspective, patterns may falsely appear to be new: we have just forgotten!