Jump to ContentJump to Main Navigation
The Dynamic FirmThe Role of Technology, Strategy, Organization, and Regions$
Users without a subscription are not able to see the full content.

Alfred D. Chandler, Peter Hagstrom, and Örjan Sölvell

Print publication date: 1999

Print ISBN-13: 9780198296041

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198296045.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 13 June 2021

Science, Technological Advance and Economic Growth

Science, Technological Advance and Economic Growth

(p.45) 3 Science, Technological Advance and Economic Growth
The Dynamic Firm

Richard R. Nelson (Contributor Webpage)

Nathan Rosenberg

Oxford University Press

Approaches the firm from the perspective of its critical role in contributing to overall economic growth, addressing the broad question of technological advance and how it comes about. The ‘technological residual’ in economists’ growth models has traditionally been treated as exogenous and has only recently come to be incorporated as endogenous, as a function of firms’ investment in research and development; the authors elaborate on this theme by focusing on the neglected role of science in technological advance and on the inherent uncertainty associated with such advance, and back their case with examples. The important contribution of private firms that invest in creating new or improved technology and appropriate the benefits thereof is given its due, but it is also noted that applied science (typically performed at universities) and research and development carried out by firms feed off each other; this interdependence stems from externalities, but also from less obvious linkages, such as private laboratories providing a labour market for university‐trained researchers, and applied university research rapidly responding to the need for scientific explanations of technological advances made by private firms. The fundamental uncertainty often associated with technological breakthroughs further complicates this picture, although the authors argue that there is commonly true surprise involved in the discovery of new technology, and in addition, make the point that in fact ‘old’ science often lies behind these breakthroughs. Finally, it is noted that incorporating the interdependence of public and private R&D, and the uncertainty of technological advance, into mainstream formal growth models may be difficult, however realistic it is.

Keywords:   companies, economic growth, economic models, firms, growth models, interdependence, private research and development, public research and development, research and development, science, technological advance, technology

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .