1. Interpretations Of The Technological Change
A definition of Science is the knowledge of nature that can be replicated and tested because it is published. In addition it is usually applied in universities and some firms. It utilizes ceteris paribus and the findings can be generalized. On the other hand technology is the non-codified application of knowledge and therefore difficult to reproduce or imitate.
Connections between science and technology (S&T henceforth) have baffled many historians and economists. One of the explanations of the relationship between S&T is the simple linear model set out by the economist Schumpeter. In his view the relationship is going from science to technology then to the economy. The simplicity of the model made it well liked with policy makers suggesting that it is best to expand the budget to support science and basic research and development. However, this model might be well suited to the late nineteenth century industries than the twentieth century industries and therefore no longer accepted as representation of the relationship between S&T. Bush report, Science, the Endless Frontier as cited in (Brooks, 1994) further supports this view. He basically encourage that policy makers should support science because scientists will know automatically what is important to the world and technology will develop and follow.
Schmookler analyses of the relationship between S&T and the economy, while being similar to the linear model in the fact that there is no role for the firm in these two theories of technological improvement; it differs in the direction of the relationship. Shmookler concluded from patent and economic data that innovation lags behind production and investment in some industries such as, railroading and building industries so that demand is the drive and determinant behind innovation. It might influenced innovation but to conclude that it determent innovation is a strong assumption and not such assumption is not enough to conclude from the data examined unless there is a stronger evidence that proves the relationship. Regardless Schmookler also concluded that there is no possible innovation advance if it wasn’t for science base behind it. However, this science base could produce many inventions and demand is the one responsible for making that particular innovation and not other possible ones.
Later on economists realized the role of firms in technology and R&D, because the firm need to be a participant in the ever-advancing research frontier to be able to innovate and develop.
2. The Relationship Between Science And Technology
The historian Toynbee imaged in his book A Study of History, S&T’s relationship as two dancers dancing to the same rhythm (as cited in Price, 1965). Both S&T expand rapidly but in different trajectories and respond to different demands. While science mostly built on previous scientific contributions as cited in the newest research papers, technology built on previous...