tailieunhanh - Lecture Microeconomics (20/e): Chapter 13W - Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

Chapter 13W - Technology, R&D, and efficiency. This chapter addresses the firm’s ability to determine its optimal amount of research and development (R&D) and how entrepreneurs and innovators further technological advances. Many of today’s companies like Nike, Intel, and Wal-Mart owe much of their success to technological advances; differentiating with invention, innovation, and technological diffusion. | Technology, R&D, and Efficiency Chapter 13W Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. This chapter addresses the firm’s ability to determine its optimal amount of research and development (R&D) and how entrepreneurs and innovators further technological advances. Many of today’s companies like Nike, Intel, and Wal-Mart owe much of their success to technological advances; differentiating with invention, innovation, and technological diffusion. Next, the role of market structures in promoting technological advances is studied. The Last Word is about how federal spending on basic scientific research and development has contributed to long term growth in the US in the past but that may no longer be the case. Now some economists worry that the government is not doing enough to support needed basic research. Invention, Innovation, and Diffusion New and better products Better . | Technology, R&D, and Efficiency Chapter 13W Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. This chapter addresses the firm’s ability to determine its optimal amount of research and development (R&D) and how entrepreneurs and innovators further technological advances. Many of today’s companies like Nike, Intel, and Wal-Mart owe much of their success to technological advances; differentiating with invention, innovation, and technological diffusion. Next, the role of market structures in promoting technological advances is studied. The Last Word is about how federal spending on basic scientific research and development has contributed to long term growth in the US in the past but that may no longer be the case. Now some economists worry that the government is not doing enough to support needed basic research. Invention, Innovation, and Diffusion New and better products Better ways of producing and distributing those products Occurs over the very long run Profit is the incentive LO1 From the perspective of economists, there is a three step process of invention, innovation, and diffusion that occurs over a time period called the “very long run”. This time period can be as short as a few months or as long as many years. Invention, Innovation, and Diffusion Short run No change in technology, plant, or equipment Long run No change in technology Very long run Technology changes with R&D LO1 A better concept of the time period in which technology can change is achieved by comparing the very long run with the two shorter time duration concepts discussed in earlier chapters. Invention, Innovation, and Diffusion Invention New product or process Based on scientific knowledge Patent protection Innovation Product innovation Process innovation Can’t be patented LO1 The basis of technological advance is invention which is the discovery of a product or process .