General Purpose Technologies in Theory, Applications and Controversy: A Review

Clifford Bekar (), Kenneth Carlaw () and Richard Lipsey ()

Discussion Papers from Department of Economics, Simon Fraser University

Abstract: Distinguishing characteristics of GPTs are identified and definitions discussed. We propose a definition that includes many multipurpose and single-purpose technologies and that uses micro-technological characteristics not macro-economic effects. Identifying GPTs requires recognition that they evolve continually and that there are always boundary uncertainties concerning particular items. We consider existing ‘tests’ of whether particular technologies are GPTs, arguing that many of these are based on misunderstandings, either of what GPT theory predicts or of what such tests can establish. The evolution of formal GPT theories is outlined, showing that only the early theories predicted the inevitability of GPT-induced showdown and surges. More recent GPT models, that are designed to model GPT’s characteristics, demonstrate that GPT theory does not imply the necessity of specific macro effects. We then show how GPTs can rejuvenate the growth process without causing slowdowns or surges. We conclude that the concept is helpful, while the criticisms can be resolved.

Keywords: General Purpose Technologies; technological change; patents; slowdowns; surges; growth theories; productivity (search for similar items in EconPapers)
JEL-codes: N00 O30 O33 O40 O41 (search for similar items in EconPapers)
Pages: 31
Date: 2016-11
New Economics Papers: this item is included in nep-gro and nep-ino
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Citations: View citations in EconPapers (2)

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Journal Article: General purpose technologies in theory, application and controversy: a review (2018)
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