Technoscan

As far as we can ascertain there is no generally accepted model to describe the link between technological progress and economic growth. We have not yet succeeded  in making this link visible. This is an inconvenient state of affairs in a technology-dominated world.

In place of an explicit model we proclaim a general  belief in a compelling link  between technological progress and economic growth. In fact we base significant policy initiatives on this belief. However, it would be far more convenient to have an effective model. How far have we come in constructing one?

The best-known model is based on macro-economic theory. It uses an aggregate production function to link economic output on the one hand, to three economic inputs on the other. The three inputs are (1) labor, (2) capital and (3) total factor productivity (TFP).

This approach represents a major step forward. It draws attention to the overriding importance of TFP. This factor contributes about 40%+ to overall economic growth. But unfortunately it does not unravel the pure impact of technological progress. We have to look further.

We describe the macro-economic approach in the next posting.

The purpose of this blog is to contribute to optimizing the functioning of the innovation chain. The innovation chain is the sequence of events that proceeds from scientific discovery, through technological progress, and on to practical application.

To effectively manage the chain we need conceptual models of the landscapes representing the various links: (1) scientific, (2) technological, and (3) fields of application. The last group includes (i) economy, (ii) society, (iii) environment, (iv) health and (v) defense.

The weakest theoretical link in the chain is Item (2). There is no generally accepted model of the technological landscape and of its connections to the various fields of application. Without this link, we cannot optimize the functioning of the chain.

The first contribution to such a model was formulated over fifty years ago. It laid the foundations for countless brilliant studies. However these have not reached the degree of finality required for confident policy and management initiatives. Much needs to be done.

On this blog we wish to explore two themes:

• A new approach to a model for describing the link between technological progress and economic growth
• Procedures to guide technological progress to achieve economic growth

Later we will explore the links to other fields of application.

Revised: September 10, 2009