Assessment 5 part 3 - answer PDF

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Assessment 5 3. Describe the process of technological change. How technological evolution takes place? Technological change means the technical knowledge used in the production of capital and machinery. The various changes in technology leads to an increase in the productivity of labor,capital and other production factors. Technological progress comprises the creation of skill, new means of production, new uses of raw materials and the widespread use of machinery. Technological evolve through invention, innovation, imitation and learning and a distinction drawn between earned and unstated knowledge. The first stage is the advancement in scientific knowledge, the second is that of the application of this knowledge to some useful purposes and third is the commercialization of invention which is called innovation. This has a great significance in the process of development. Schumpeter has distinguished between invention and innovation. Invention implies the discovery of new technique while innovation is practical application of invention in production for market. It may be called commercialization that originates from scientific advancement. Invention is scientific fact while innovation is economic fact....