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Lessons for Today from Past Periods of Rapid Technological Change

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  • Aránzazu Guillán Montero
  • David Le Blanc

Abstract

We provide a history of past periods of rapid technological change starting from the Industrial Revolution continuing up to today. We find that it takes decades for technological breakthroughs to make a difference to the aggregate economy. The reason for this delay is that to realize the value of these breakthroughs requires complementary investments. Second, for good or for bad, government has played an important role in facilitating these transitions through both investments in physical infrastructure and legal reforms. We also emphasize that because technological breakthroughs are difficult to predict, the responses of governments are necessarily improvisational.

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  • Aránzazu Guillán Montero & David Le Blanc, 2019. "Lessons for Today from Past Periods of Rapid Technological Change," Working Papers 158, United Nations, Department of Economics and Social Affairs.
    • Handle: RePEc:une:wpaper:158
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    Keywords

    automation; technological anxiety; Industrial Revolution;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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