The role of technology in the creation of wealth The technomic perspective

Advances of technological paradigm The stone age The bronze age The iron age The steam power age The electricity age The nuclear power age The electronics age The aerospace age The information age The biotechnology age

In search of the original of wealth The driving forces Population Specialization  trading  pricing  market mechanism Laissez-faire doctrine: the invisible hands Capital Firm : organization Technology: innovation The visible hands ’ participation & intervention

Adam Smith & Joseph Schumpeter Production coordinated by the market price mechanism Comparative advantage & international trading Specialization, differentiation, distinctiveness Competition & rent-seeking behavior Innovative destruction Monopoly is the compensation of innovation

The facilitators of wealth growth The protection of property rights Resolve the problem of free-riding The enforcement of formal rules Allow the existence of the private informal rules Rescue the problem of market failure

The long-wave cycle The take-off power of investment Robert Solow, 1987 Nobel prize winner The limits of capital investment Barrier of productivity The economic depression long-term cycle The short-term recession cycle The quality of investment Breakthrough of technological paradigm Education on innovational potential

The wealth growth Capital investment products f (K, T1) f (K, T2) f (K, T3)

Technology cycle, Betz(1987) Science pushes technological innovation New technological innovation develops the product opportunity New product opportunity creates the production industry Product & production refine and redefine the market Market expansion New entrants and the surplus of production capacity Profit erosion by the price competition Market consolidation and firm exit Frustration of financial market and economic recession New paradigm extrusion brings about the new investment confidence

Evolution of production technology Before scientific management Agricultural cooperative industry Scientific management age Organizational & industrial relation age Operation Research age (World War I,II) Computer-aided analysis age (1950s) CNC automation age Cybernetics & integration models Personal computer facilitated age Shift of technological paradigm- network penetration and new management style

Evolution of product technology Mechanical weaving & steam engine Telegraph & telephone Motor & Fright Television & calculator IC & Laser CPU & NMR

Technology and national economy Mission-oriented technology policy Diffusion-oriented Employment-oriented Export-oriented Search the key advantage from the perspective of global economy

Extended reading Review the recent reports on the new emerging giants in the future economic blocs (golden bricks). (This report issued by Goldman Sachs is available now at The dragon: China The bull: India The lion: Brazil The bear: Russia Think over this forecasting and propose your comments