Technological Change: Invention, Innovation, and Market Incentives

The video explores the distinction between invention and innovation, using examples like the telephone and iPhone. It discusses the impact of technological change on consumer choice and GDP, highlighting process innovation's role in productivity, exemplified by Ford's mass production. The video also examines how governments and market structures can encourage technological change through patents, tax incentives, and support for entrepreneurs.

What role do patents play in encouraging innovation?

In what ways can governments support research and development?

Discuss the impact of market structure on technological change.

What are the advantages and disadvantages of competitive markets in fostering innovation?