This is an example of technological change or technological innovation.
What factors prompt firms to spend on research and development and develop new technologies, new manufacturing processes or new products What are the determinants of technological change at the firm level What are the determinants of the rate and direction of technological change What is the relationship between market structure and technological change What role does technological innovation play in driving economic growth How does the rate of technological change enhance the global competitiveness of different economies These are some of the questions that the subject 'economics of technological change' deal with.
In this paper an attempt has been made to try and answer some of the above questions in the context of the empirical evidence provided by the mobile phone industry in the UK. Since the subject 'economics of technological change' is vast, growing and highly complex (see, for example, Verspagen & Werker, 2003 for an interesting insight to the state of current research on the subject), this paper makes no claim of being either a very rigorous or a very comprehensive attempt at answering these questions. ...Show more