Chris Freeman - Rationale and Method

Starting point: Traditionally economists have failed to properly examine how technical change comes about. But… New growth theory

New growth theory privileges education, research and experimental development as the basic factors underlying economic growth. Shift in focus driven by shift in employment patterns

Research and inventive activities account for only a small proportion of “info” employment But R&D is at the heart of the global economy - produces bulk of the new materials, products, processes and systems

Growth of a professionalized system of R&D is –"perhaps the most important social and economic change in twentieth century industry".

1870s first specialized R&D labs appear in industry. Previously advance of technology to due mainly to direct involvement in the production process

Adam Smith - "a great part of the machines made use of in those manufactures in which labour is most subdivided, were originally the inventions of common workmen.”

Modern R&D contrasts with this by dint of: its scale, scientific content and the extent of its professional specialisation

Professionalisation is associated with: the increasingly scientific character of technology the growing complexity of technology and the partial replacement or batch/custom production by flow/mass production lines

trend towards division of labour creates specialised R&D labs

Freeman, addresses the operation of R&D from traditional economic perspective - efficiency in the deployment of scarce resources. Thus he seeks to address the following questions:

1. How can we improve the flow of new information, knowledge, inventions and innovations? 2. What kind of economies of scale are therein research or in development? 3. Can the gestation period for innovation be shortened? 4. What kind of firms are most likely to innovate and under what market conditions? 5. What types of incentives are most effective in generating invention and innovation?

Traditional reluctance to examine invention and research in this way creates: mythology around invention a magic wand approach to science and technology "What is not understood may often be feared or become the object of hostility."

R&D revolution of the 20 th C. involves a fundamental change in the relationship between society and technology.

Consider the argument that science and technology and autonomous scientists concerned with discovery engineers concerned with practical application

Empirical evidence to suggests that science and communication with the scientific community is vital for contemporary technical innovation. Thus we have science-associated technologies

Thus the R&D system represents the point of entry for science into the industrial system. Advent of new science-based technologies has affected the way in which improvements and exchanges are made in production

Improvements and changes now involves some grasp of theoretical scientific principles. Creates substantial problems between specialist and non-specialist - alienation.