ABSTRACT
In this chapter we explore the views of three heterodox economists on how competition shapes the direction of technical change; that is to say, why competitive pressures force firms to choose increasingly capital-intensive techniques. A comparison of alternative heterodox theories of competition should help to frame the relevant issues surrounding the direction of technical change. We selected three representative accounts of this process, including those by D. Foley, T. Negishi, and A. Shaikh, each reflecting a different reading of classical political economy. They provide seminal interpretations of the rationale for the introduction of biased technical change in competitive industries, and of the available empirical evidence detailing its impact on labor productivity, wages, and prices. We specifically examine the impact of technical change on profitability trends from these three perspectives.
