The sum of knowledge of the means and methods of producing goods and services. Technology is not merely applied science, because it often runs ahead of science - things are often done without precise knowledge of how or why they are done except that they are effective. Early technology - craft skill - was almost entirely of this sort. Modern technology is increasingly science-based, however, and, rather than relying on acquired skill, is easily communicable by demonstration and printed material to those qualified to receive it. It also includes methods of organization as well as physical technique.
Technological change and the diffusion of technology are important in economics because new methods, including those embodied in investment, play an important part in theories of economic growth. There is, however, some controversy about the extent to which technological development is an autonomous factor in economic growth. Because it is so difficult to measure, there is also room for doubt about whether or not technological change is, or has recently been, accelerating. endogenous growth theory.
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