Unit 5: Information Technology and Emerging Trends Flashcards
(43 cards)
The rise of _________ and the large impact that these new technologies are having on the way that society functions, have prompted many to claim that we have entered a new era.
information and communication technologies (ICT)
A period of development in the latter half of the 18th century, where there is change from
one economy to another.
- refers to eras when rapid and significant technological changes fundamentally alter the way that production is carried out in society, affecting not only how people work but also how they live their lives.
- involves technological, socioeconomic, and cultural aspects
- The term________ refers to the discovery of new products or processes, while _______refers
to the commercialization (bringing to the market) of new products or processes.
industrial revolutions
invention
innovation
1st industrial revolution
mechanization
water power
steam power
1765
2nd industrial revolution
mass production
assembly line
electricity
1870
3rd industrial revolution
computer
automation
1969
4th industrial revolution
cyber physical systems
2000 onwards
INVENTION TECHNOLOGIES
machines
telephones
automobiles
television
computers
INNOVATION TECHNOLOGIES
assembly lines
CD’s
flat screen TV’s
smartphones
- started in England during the late 18th century, concentrated in Britain and initially focused on textile manufacturing.
- Cort’s puddling
- rolling process for making iron
- Crompton’s mule for spinning cotton
- Watt steam engine
1st industrial revolution - 1765
● Products / Services – Vegetables, Coal, Iron, Discovery of chemicals
● Transportation – Railroads, Basic farming
● Production System – Manual Labor to mechanical
● Communication - Printed materials
- Development of electricity
- Internal-combustion engine
- Railway
- Chemical industry
2nd industrial revolution - 1870
● Products / Services – electricity, chemicals, petroleum, steel
● Transportation – automobiles, aircrafts
● Production System – machine-aided equipment
● Communication – telephone, telegraph
- Started with the development of transistors and the rise of electronics and digital technology
2nd industrial revolution - 1870
● Products / Services – Internet, rise of electronics, source of energy: nuclear power
● Production System - Automation
Economists interested in the pervasive effects of technological change in different industrial revolutions have devised the concept of a ___________________
General Purpose Technology (GPT)
Main Characteristics of a GPT
● have a wide scope for improvement and elaboration - this means that the technology does not appear as a complete and final solution, but as a technology that can be improved through the different opportunities for technological change that surround it.
● applicable across a broad range of uses - this means that its use is not restricted, for example, to only one industry but open to many different types of industries and
consumers.
● have a potential use in a wide variety of products and processes - this means that the new technology should not result in the creation of only one set of products (such as a computer), but a wide set of products (such as complex new air-traffic control systems or new inventory controls).
● have strong complementarities with existing or potential new technologies - this means that the technology does not only replace existing methods but also works with them, ensuring an even broader impact on the systems of production and distribution.
- the quality of producing something
- measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs. It is an indication of the efficiency of production or distribution.
productivity
can be measured as output produced per hour of labor
labor productivity
- Total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period
- Total output divided by total labour hours in the year gives us a measure of labour productivity.
Gross Domestic Product (GDP)
degree to which the various tasks involved in the production of a good or service are divided among different workers.
division of labor
increases when the division of labor increases
Increases in productivity can be transmitted throughout the economy for several reasons:
- Productivity – Income
- Productivity – Cost of Production
- Prices and Industrial Change
productivity
Increases in productivity tend to _____ the cost of production, precisely because more output can be produced with the same amount of inputs
Since cost reductions tend to be translated into price reductions, increases in productivity eventually tend to ______ prices
lower
reduce
measure of the average level of prices for some specified set of goods and services, relative to the prices of a specified base period
- The most widely used method of
constructing an index is based on the _______________
price index
notion of the percentage
refers mainly to the way in which power is distributed among firms.
- can be described by factors such as the number of firms in the industry and the distribution of
market shares. - refers to the characteristics of an industry, such as the number of firms operating in it, the distribution of power between them (whether some are very large and others very small, or whether they are all very large), and the degree to which new firms find it easy to enter the industry).
Industry structure
All economies fluctuate in a __________
For a few years, growth is quite rapid, output and incomes rise, and unemployment falls. This is the ‘_______
business cycle
boom
The industry life cycle is characterized by the following phases:
- A pre-market or hobbyist phase, in which the product is produced more as a hobby or luxury than for commercial purposes. (e.g. self-driving electric cars)
- An introductory phase, in which the product begins to be produced more for commercial purposes than for hobby reasons. (e.g. self-driving cars)
- A growth phase, in which the industry grows rapidly due to the emergence of a standardized product. (e.g. electric cars - Tesla Model S)
- A mature phase, in which demand slackens and fewer technological opportunities are available. (e.g. ford focus car)
Game Changing Technologies
Advanced Industrial Robotics
Additive Manufacturing
Industrial Internet of Things
Electric Vehicles
Industrial Biotech
