Introduction

Technological progress consists of many components in different forms, e.g., related to capital goods, labor, production organization, or social environment; embodied and disembodied with respect to physical inputs; exogenous or endogenous to producers. Theoretical development and empirical verification of economic growth, including the impact of technological progress on the growth, attracted many economists’ attention in the 1950s and 1960s. Major progress was made in explaining the contribution of factor inputs, particularly capital and labor, to long-term national economic growth along a steady-state path. The technological progress and productivity gain in turn stimulate the next run of new capital investment. The effect of the interaction of embodied technological progress and physical capital and labor inputs on economic growth is considered well beyond the growth of the individual producer’s production because new capital and labor inputs are the major means to reallocate the resources in the whole economy.