The Nature of the Problem

Harold Lydall

Chapter 1 in The Entrepreneurial Factor in Economic Growth, 1992, pp 1-10 from Palgrave Macmillan

Abstract: Abstract Three great facts are largely ignored in standard economic theory. The first is that the predominant part of the rapid technical progress of the past two and half centuries has been generated within enterprises. Standard economic theory assumes that technology is ‘given’, coming from outside industry. Yet even the most superficial acquaintance with actual events demonstrates that this is not the case. While scientific advance has played a crucial role in many fields, it has never been a sufficient condition for technical progress; and in many cases, especially in earlier centuries, it was not even a necessary condition.1 If technology were really ‘given’, it would be impossible to understand why it is not used equally by all countries. If science were the sole source of technology, one might ask why the Soviet Union, which has devoted enormous resources to science, persistently lags behind in technical development (except perhaps in the military field). Why does Japan, which devotes much less resources to science, now lead the world in many fields of technology? Why is Britain, with so many Nobel prizes to its credit, so technically unprogressive?

Keywords: Foreign Direct Investment; Behavioural Assumption; Perfect Competition; Great Fact; Standard Economic Theory (search for similar items in EconPapers)
Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-37446-1_1

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DOI: 10.1057/9780230374461_1

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