Technology v/s economic growth
Technology is a way input to the production process converted to the ouput, but a new idea allow a given bundle of input to produce more and better ouput.
The characteristic of the ideas,is that they are ” non rivalous”, it means once the ideas are developed, anybody can use it, thus it leads to increasing return and imperfect competition and leads to economy growth.
When the ideas are rivalous means it cannot be used by all. For ex once’s use of CD player excludes the other’s use of CD player at the same time, thus if another want the CD player firm has to produce more. In case of non rivalous once the good is produce, it can be used by all, for example the design for the next generation computer chip has bun created, factories throughout the country and even the produce computer chips provided they have the plans in hand.
Another example the paper the plans are written on is rivalous ; an engineer, whose skill are needed to understand the plan is rivalrous but the instruction written on the paper – the ideas are non rivalrous.
Now the questions is how much these non rivalrous ideas are excludable? The degree to which a good is excludable is the degree to which the owner of a good can charge fee for the use.
Low degree of excludability means anybody can use the good but high degree of excludability are highly protected by patents & copyrights only few can use it, thus it leads to high returns and benefitted to the producer and thus to the economy