| Abstract: | The author argues that the nature and importance of technical change in industry in the OECD countries began to alter in the 1970s. Statistical evidence suggests that investment activities embodying process innovations were the main motor of technical change in the 1960s. In the 1970s, however, there are signs that innovative activities (research, development, and design) resulting in product and systems innovations grew in importance. If the trend continues, countries and industries with strong capacities for industrial innovation will have higher living standards and industrial employment than those without. In this article the author discusses the nature of, and the evidence for, the changes taking place. In the next article he will discuss the policy implications. |
