Patterns and Sources of Technological Progress

Abstract

The institutional conditions by which appropriate technology and human resources are effectively combined with capital accumulation for promoting industrial development are examined in this chapter. Accumulation of intangible capital created by the government’s investment in scientific research and school education is critically important in the initial phrase of industrialization. Still it is a necessary but not the sufficient condition. Sustained industrial development requires the organization of competitive markets that facilitate innovations by Schumpeterian entrepreneurs.