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Information Technology, Capital Structure and the Nature of Technical Change

1st Person: Eliasson, Gunnar
Type of Publication: Paper
Language: English
Published: The Research Institute of Industrial Economics (IUI) 1985
Series: IUI Working Paper
Keywords: Informationstechnik
Technischer Fortschritt
Kapitalintensität
Information technology
Technological change
Online: https://www.econstor.eu/bitstream/10419/94863/1/wp138.pdf
Description: This paper presents statistical evidence on (1) the importance of 'soft' capital spending items like marketing and R&D investments, and (2) the dominant service content of production in the modern manufacturing firm. It pictures the firm as a dominantly information processing entity that has been gradually shifting its competitive base from process cost efficiency toward a product technology. The paper, hence, argues (3) that during the post-war period technical change has been gradually pivoting in a relatively more (hardware) capital saving direction.

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