Technological Change and Learning in the Computer Industry

Abstract

Recent papers have introduced specific input variables in unrestricted Cobb-Douglas functions to define production relationships and obtain measures of technological change for industries and sector classifications. 1 In a similar manner this paper incorporates the engineering, economic, and time aspects of the production process for the computer industry in several statistical models. The purpose of the study is to illustrate that technological change can be accounted for by specific innovations of the industry and that these measures can serve as measures of capital embodied technological change.