chapter  10
19 Pages

Effects of information technology on workers and economic performance

As discussed in previous chapters, and especially with reference to both Figure 8.2 and equations (9.2) and (9.9), indigenous R&D entails a fundamental investment in the innovation process and one that drives productivity growth at all levels of aggregations. To a lesser extent, so too is purchased technology that enters the firm’s production process in the form of new capital equipment. Such purchased technology embodies the innovations, and hence the R&D, of those firms producing new capital equipment.