Explaining Patterns of Technological Diffusion
Imagine a new manufacturing technology (Technology V1) is developed in Country A, a nation with high wages and low energy prices. This technology is highly profitable in Country A because it uses less labor but more energy than older methods. However, Country B, a nation with low wages and high energy prices, does not adopt Technology V1 because its existing, more labor-intensive methods remain cheaper there. Fifty years later, an improved version (Technology V2) emerges from the original design. This new version is rapidly adopted not only in Country A, but also in Country B and other nations with diverse wage and energy costs. Analyze the economic principles that explain this two-stage process. Specifically, what must be true about the input requirements of Technology V2 compared to both Technology V1 and Country B's original methods for it to be adopted so widely?
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Ch.2 User-centered design process - User Experience Design - Winter 23 @ UI Design in UI @ University of Michigan - Ann Arbor
UI Design in UI @ University of Michigan - Ann Arbor
User Experience Design - Winter 23 @ UI Design in UI @ University of Michigan - Ann Arbor
UI @ University of Michigan - Ann Arbor
User Experience Design @ UI Design in UI @ University of Michigan - Ann Arbor
University of Michigan - Ann Arbor
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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