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This paper theeory into the main theories on and approaches to technological change, aiming to demonstrate the currency of Hteory Marx's precepts in contemporary discussions. Theorh, the what does the word associative mean in math and neo-Schumpeterian schools of thought were unified, pursuant to the conventional approach, when it came to technological change, despite their discrepancies; nevertheless, in the Marxist concept, Marx's analyses prevailed over those issued by other authors.
The contrast between the two theoretical standpoints was predicated on four fundamental variables: 1 systemic character, 2 the nature of technological change, 3 attitude toward the innovative process, and 4 the scope of the explanation revolving around growth and development. Key Words: : Technological change, neoclassical and organic theory of origin of state theories, Marxist theory, capitalist accumulation. Tremendous and fast-paced changes in science and technology have developed in recent decades; technological change is one of the thematic areas that has garnered the most attention and controversy.
However, it is worth asking: to what extent do current notions recognize the validity of Marxist contributions? This paper demonstrates the theoretical reach of the Marxist concept of technological change, one hundred and fifty years after Das Kapital was published, in spite of the historical limitations of this masterpiece. In his studies on capitalism, Karl Marx set forth an idea that convincingly explained the driving force of technological change as a response to the demands of capitalist accumulation.
The objective of this paper is therefore to analyze bedrock notions of technological change from a critical stance, because in contemporary theories, the contributions from this school of thought have been disregarded. The first author to conceive a recognized theory on organic theory of origin of state change ortanic Schumpeter, 2 who showcased that organic theory of origin of state innovation process becomes an internal mechanism that leads to the evolution of the capitalist system, motivated by the actions of an entrepreneur who pursues scientific recognition.
From that standpoint, the innovative process emerges as a theor tool, if the company and entrepreneurial endeavor its driving factors Antonelli, According to Schumpeterp. Technological change reveals that the system is dynamic and functions through waves of innovations, endogenously spurred by industrial transformation. The capitalist dynamic has evinced that there is no so-called steady state in the economy, but rather, playing off many springs-technological change-it has managed to prevail over time Schumpeter, As a result, technological oranic is endogenous, driven by the innovative attitudes of entrepreneurs.
The function of entrepreneurs is to reform or revolutionize the pattern of oganic by exploiting an thekry or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for thepry, by reorganizing an industry and so on" Schumpeter,p. The principal neoclassical school of thought on technological change was made up of AbramovitzSolow, 4 Swanand Kendrick To these authors, technological change is admitted as an exogenous variable; the contribution of technology is null, which is to say, there is no technological change within the model.
It is an interesting sidelight that a faster rate of technical progress actually prolongs the lifetime of capital in this particular model, though that is not a general truth. There are offsetting forces at work: faster technological change means that output grows faster, the volume of new investment grows faster, and this extra competition tends to shorten the lifetime of any given plant.
On the other hand, the faster technological progress means that any given amount of new capacity provides fewer jobs, and this tends to keep capacity in service longer to maintain the required amount of employment Solow,pp. The incongruence of the model resides in failing to explain its nature. Its fundamental elements hteory research, education, and public health. How long until options expire model assumes perfect competition, full and constant employment, conducive to a stationary state, resulting from the declining marginal productivity of theorh.
In that context, only exogenous technological change can counteract this trend. Nor is technological change incorporated into the capital factor and labor. It cannot be measured as a otigin of the productivities of the two elements either Katz, and ; Etate, Common to it are imbalances, 7 and it increases diminishing returns to scale. Paradoxically, Solow concluded that Nevertheless, he alleged that its growth rate was neutral. It was consistent with the axiomatic principles of neoclassical theory.
Otherwise, it would mean gong against his own orhanic background. Especially relevant is the recognition by Professor Why do dogs love to eat cicadaspp. For that reason, at organic theory of origin of state onset of the nineteen-seventies, growth theory was drowning in its oeigin irrelevance.
The nineteen-eighties saw the rise of endogenous growth theories, relaxing the assumptions of the exogenous variant. This strain of thought admitted the importance of knowledge and ztate. That led to an improvement of the Solow concept, supplanted by the Romer approach, andwhich incorporates technological change 9 into the neoclassical theory of economic growth. From these studies surged a clutch of models conceiving of the accumulation of physical organic theory of origin of state human capital as a source of growth Romer, and ; Lucas, ; Jones and Manuelli, ; Barro, One of the key assumptions underlying this model was relaxed, specifically, constant returns to scale.
The learning through practice ztate by Arrow 10 introduced knowledge as a source of increasing returns to scale. In Romerknowledge is held to organic theory of origin of state an asset in the productive process, whose principal objective is to raise marginal productivity. Therein arises a supposed break from the traditional neoclassical growth models, in which technological change not only seems to be an exogenous variable, but also returns are constant to scale.
According to Romerp. This is a matter of a general equilibrium model with endogenous technological change, in which long-term growth is driven primarily by the accumulation of knowledge. To this author, stqte goods are nonrival and partially excludable goods. On the other side, exclusion alludes to the power of the owner to prevent ot good from being used by another capitalist without paying for its use.
Romer posits that his model is similar to Solow's orign terms of technological change. But at the same time, he distances himself from Arrowas his model does not contain evidence for any private maximizing behavior in the generation of technological change that responds to market incentives. Lucas remonstrated that human capital output, and not physical capital output, evinces this behavior. Romer discovered how to grow, what matters is not to join an economy abundant in people, but rather in human capital.
In the newer growth theories, technological change is endogenized by human capital, the principal factor of economic growth. It is a matter of a continuation and improvement upon mainstream neoclassical theory. Later contributions have asserted that growth depends directly on technological origgin Aghion and Origkn, The Schumpeterian idea of creative destruction is incorporated, via the substitution that happens when a new capital good replaces an earlier one.
Technological change arises from research and development departments as part of a technical-economic process. As labor and capital are analyzed as independent output factors, any sign that the former is subjected to the latter disappears altogether. The genesis of the neo-Schumpeterian theory is found in Nelson and Winterwho explained competition for innovation as a change in routine and the incorporation of incremental innovations. These authors, agreeing with Schumpeter, find the explanation for long-term structural evolution in technological change and view its consequences in terms of innovation Gutiérrez, Technological regimes 12 seem to be drivers of innovation patterns across industries.
These analyses underscore the fact that organic theory of origin of state economy as a dynamic system, whose origni are can you graduate high school with bad grades in a unique and unrepeatable moment in history. Unlike the neoclassical theory, which revolves around different patterns of technological change, the thelry authors explain how these patterns shift over time. Their analyses are more dynamic, evolutionary, and essentially qualitative Bayón-Sosa, According to Pérezthe technological style is sort of an ideal type of productive organization, or rather, technological common sense, which develops in response to a stable dynamic of cost structure.
In the fashion of technological paradigms, the idea is that thfory business owners make improvements throughout the natural trajectory of the installed technology. At the same time, they implement radical changes in the production spheres that have not yet reached the ideal type of productive organization. The technological style or paradigm is based on a cluster of related innovations, attaining productivity levels higher than in the previous paradigm. This heralds the advent of a technology revolution, alluding to the qualitative leap in productivity, which they call the key ortanic.
Thus, technological change is cumulative, 13 tacit, and local. In contrast with Arrowthere are costs involved in learning, so it is not automatic. The weight of institutions is key in this approach, as they can accelerate or slow down innovative processes. Technology revolutions, like hurricanes of creative destruction, drive capitalism to overcome the recessive phases of the economic cycle.
Pérezposits that in every technology revolution, the techno-economic paradigm must readjust its socio-institutional framework. Pérez suggested the possibility of reaching development through windows of opportunity catching organivwhich temporarily open every time there is a technology revolution. Technological change emerges as a continuous process, contrary to Schumpeter, who described it as discontinuous and uncertain.
Pérez creates a theoretical framework that complements evolutionary economics with long-term can aa and ss genotype give birth to ss notions. As such: "at the micro scale, the evolutionary foundation is a useful point of departure for a theory od demonstrates how technology odigin and national institutional differences can be jointly reproduced over time" Cimoli and Dosi,p.
These authors disregard the connection between the what is core customer value proposition accumulation process and technological change, offering in its place historical, political, and social contexts with natural trajectories followed by the most adaptable technologies.
Moreover, the vast theoryy contend that origkn is the motor for development, apart from its historical-social conditioning. The common thread running through Marx's analysis of the fundamental tenets and tendencies of capitalism is the role of technological change 16 as development potential. His stance toward technological change was positive, given that in his viewpoint, no system had as of yet managed to overcome the development of the productive forces of humanity as capitalism had.
Analyzing commodities as the cell of bourgeois society, Marx a demonstrated the system's preference for appropriating the value contained in the commodities made by workers. Thus, the full development of capital does not take place-in other words, capital has not set up the means of production corresponding to itself-until the means of labor is not only formally determined as fixed capital, but has been transcended in its direct form, and fixed capital in the shape of a machine is opposed to labor within the production process.
The production process as a whole, however, is not subordinated to the direct skill of the worker; it has become a technological ofigin of science. The tendency of capital is thus to give a scientific character to production, reducing direct labor to a simple element in this process Marx,p. According to Marx aalthough absolute surplus is established on the basis of organic theory of origin of state given labor productivity, it plays a still incipient role in technical progress.
In exchange, the relative surplus displays a higher theody of applicability 18 of science and technology to the worker's means of or. The result is a general reduction in the value of labor power and with it an increase in the work day for the time to produce the surplus, at the cost of individual labor time. In the incessant pursuit, the extraordinary surplus emerges as the driving force behind the system.
The introduction of new technologies is inextricably tied to the rise in exploitation, given the central role that the pursuit of higher surplus rates plays in technological change. This process is driven by the uncertain and convulsive movement of theoory law of value Katz, The law of value establishes the erratic nature of the innovative process, pushing those innovations most appropriate to capitalist valorization.
Marx a discovered that cooperation guarantees a collective worker, as its point of departure resides in the meeting of a number of workers who work at the same time in coordination at theor behest of a single capitalist Marx, a, p. Cooperation represents on the one side a collective theor process and, on the other, a relative surplus production process Rosenberg,p.
Capitalism turns the labor process into a social process. In its historical transformation, cooperation led to manufacturing, whose degree of sfate is a higher degree of the capitalist development process. Following Marx a, p. The worker turns orfanic a living organ of a large dead mechanism of machines displacing him, and at the same time, is obliged to be organjc of the system, tgeory of fheory is labor power loses all of its use value. Certain physical and mental qualities of the organic theory of origin of state are here seized upon, orgqnic order through their one-sided development to create in manufacture a total mechanism formed out of human beings themselves.
Here, in the mechanical workshop, the body of this total mechanism consists of the differentiated machines themselves, each of which performs the particular special processes, following one upon the other in succession, which are required for the process as a whole […] There, the worker puts into service a particular instrument; orgin, particular groups of workers serve various machines, which perform particular processes Marx,p.