[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-442104-105":59,"doc-detail-442104-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","how-much-of-economic-growth-is-fueled-by-investment-specific-technological-progress","How Much of Economic Growth Is Fueled by Investment-Specific Technological Progress?","","The text examines how technological progress relates to economic growth, focusing on whether it is embodied in new capital equipment or disembodied and affecting all inputs uniformly. It reviews economists’ measurement challenges when new products and capital goods appear and discusses Nobel laureate Robert M. Solow’s critique of the assumption that old and new capital participate equally in technical change. It then outlines why the “embodiment question” matters for policy, productivity, unemployment, and the displacement of older plants and workers.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/how-much-of-economic-growth-is-fueled-by-investment-specific-technological-progress/442104/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/how-much-of-economic-growth-is-fueled-by-investment-specific-technological-progress/442104.png","ImageObject",300,407,{"name":92,"@type":93},"Margaret","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-09-30","2026-09-29",true,{"@type":102,"interactionType":103,"userInteractionCount":8},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What does the text mean by “embodied” versus “disembodied” technological progress?","Question",{"text":112,"@type":113},"Embodied progress is embedded in new investment goods like equipment and structures, while disembodied progress affects the productivity of all inputs equally.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"Why does the text say the embodiment question matters for policy?",{"text":117,"@type":113},"If technology is embodied in new capital goods, policies that reduce acquisition costs (such as investment tax credits or R&D subsidies) can stimulate growth; the source also affects unemployment and retraining needs.",{"name":119,"@type":110,"acceptedAnswer":120},"What measurement challenge does the text highlight when new products appear?",{"text":121,"@type":113},"Accounting for total goods and services becomes more difficult as new products and new forms of durable goods emerge, complicating economic measurement.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},442104,1790812582,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":8,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":139,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145},137451207643,"https://ap-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2","by MichaelGort,Jeremy Greenwood,and Peter Rupert  \nonly modestly bigger than it was 100years ago.'at least if it's measured intons!While this may seem an absurdway to measure GDP,the point is thathow economic variables are measuredis important.  \nThe last century has witnessed the arrivalof many new forms of durable goods:aireraft,computers,lasers.robots,televi-sion,microwave ovens,x-ray machines,and cellular phones.It is obvious to anylayperson that technological progress isenbodied in new and improved capitalgoods,yet economists have been unableto discover any evidence that this is so.Instead,they have found that nearly alltechnological progress is disembodiedthat is,it affecls the productivity of allin-puts in production equally.Apparently itmakes no difference whether the inputsare capital,labor,or land or.for that mal-ter.whether the capital is new or oldNobel Prize winner Robert M.Solowdescrihes this laughahle situation.\"Itis.\"he writes.“as if all technical progresswere something like time-and-motionstudy.a way of improving the organi/a-tion ind operation of inputs without ref-erence to the nature of the inputs them-selves,The striking assumption is thatold and new capital equipment partici-pate equally in technical change.Thisconflicts with the casual observation thatmany if not most innovations need tobe in new kinds of durable equipment be-fore they can be made effective.\"  \nWhat has gone wrong with economicmeasurement?The already-dauntingtask of adding up all the goods and ser-vices produced in an economy is furthercomplicated when new prodlucts appear.  \n# How Much of Economic Growth Is Fueled byInvestment-Specific Technological Progress?\n\nold ones disapper,and the same onesget better as technology advances.Onemight be tempted to think that althoughit puzzles economists.the measurementquestion doesn't much matter to anyoneelse,but this turns out not to be so.  \n## ■ The Importance of theEmbodiment Question\n\nEver since Adam Smith's Inquiry intothe Natre and Causes of the Wealh ofNations(1776).economists have tried toidentify the engines of growth:suchidentification can be important for publicpolicy.Forexample,if technologicalprogress is largely embodied in the formof new investnent goods,then policiesthat reduce the costs of acquiring newequipment(such as investnient tax creditfor buyers or R&D subsidies for produc-ers)may stimulate growth.  \nThe source of technological progress mayalso have implications for issues such asunemployment.In the U.S.economy.anindustry's best plant can produce muchmore output per hour of work than itsaverage plant can.³Newer plants willtend to have better technology becausethey have newer capital,at least in aworld with investment-specific techno-logical pnogress.Over time.older plantsand eapital will tend to be displaced bynewer.moreefficicnt ones.If a workermust be trained to use technology that isembodied in a capital gowod,that workerbecones obsolete when the technologydoes,In such acase.policies for retrain-ing workers might be called for:So itdoes matter whether technology is em-bodiedor disembodied because thesource of technological progress has im-plications for economic growth,unemployment,and other issues that socictycares about.  \nDiscovering how economies growisvitally important for economists andpolicymakers alike.This Commentaryshows that more than halfof U.S.eco-nomic growth can be attributed totechnological advance in equipmentand structures.  \n## ■ Measuring TechnologicalProgress\n\nAs Solow notes,the implementation oftechnological progress is not free:itrequires investment in new equipmentand structures.This type of technological progress may be called inestmenl-specific,since one must invest to realizebenefits from it.Then what share of eco-nomic growth arises frominvestment-specific technological progress in pro-ducing new capital goods,bothequipment and structures,and whatshare comes from disembodied techno-logical pmgress?  \nThink about pngress,and equipmentlike comput","cbCaif5IIpiXH1Hu","https://ap.wps.com/l/cbCaif5IIpiXH1Hu","pdf",2847905,15,"English","# How Much of Economic Growth Is Fueled by Investment-Specific Technological Progress?\n## The Importance of the Embodiment Question\n## Measuring Technological Progress\n## Measuring Investment-Specific Technological Progress in","[{\"question\":\"What does the text mean by “embodied” versus “disembodied” technological progress?\",\"answer\":\"Embodied progress is embedded in new investment goods like equipment and structures, while disembodied progress affects the productivity of all inputs equally.\"},{\"question\":\"Why does the text say the embodiment question matters for policy?\",\"answer\":\"If technology is embodied in new capital goods, policies that reduce acquisition costs (such as investment tax credits or R\\u0026D subsidies) can stimulate growth; the source also affects unemployment and retraining needs.\"},{\"question\":\"What measurement challenge does the text highlight when new products appear?\",\"answer\":\"Accounting for total goods and services becomes more difficult as new products and new forms of durable goods emerge, complicating economic measurement.\"}]","How Much of Economic Growth Is Fueled by Investment-Specific Technological Progress? | PDF",1790699041,38]