ABSTRACT
The induced innovation point of view is a fertile line of approach to understanding what determines the rate and the direction of technological change. Recent advances in the economics of innovation have been grafted on to the induced technological change approach and provide new insights and basic guidance in understanding what determines the rate and direction of technological change. Many important dynamic implications are to be drawn from such an analysis of the interaction between composition effects and technological change and the notions of general and contingent technological change.
