TECHNOLOGICAL CHANGE AND ENTREPRENEURSHIP
Improved technology is a very fundamental factor in promoting growth. Technology refers to the way things are done and technological change is a change in the technique of production or the nature of the product itself. It implies more than invention. Various stages must be gone through before an innovation becomes a part of the industrial process. First, a basic scientific principle or law of nature must be discovered. Some of these are fundamental explanations of the universe; others are simple discoveries of the results which follow from given actions, whether explainable or not. Second, someone must discover how to apply this basic idea, or a combination of basic ideas, to a particular problem. This is the stage of invention. Third, someone must find out how to develop this invention into workable industry practice. This involves engineering and the creation of a technology or "how to do it." Fourth, constant improvements and adaptations to increase efficiency are necessary.
Much more is included under the concept of technological change than the introduction of new processes to produce existing goods. Of great importance, at least from the point of view of present efforts, is the creation of new products, improving old ones or making the public believe they are improved, or finding new uses for them. Other kinds of technological change include: changes in business organization (the development of the corporation was a major change); changes in the technique of management: accounting and cost accounting developments, inventory controls, human relations, and scheduling; and changes in distribution: packaging and advertising. Although the contribution of each cannot be measured exactly, it is possible that the above changes in business practices have been more important for increased productivity and growth than have the more publicized changes in science and engineering. The businessman needs a better press to get his proper credit as an innovator. It remains true that advances in science and engineering in processes and new products hold the imagination of the public. All are important to growth.