Economic Growth and Development

agricultural output in many developing countries through new seed types, and
better fertilizer and pesticides.
Figure 5.4 shows technological change biased towards industry. There is a
general belief that technological change is likely to be more rapid in industry
than agriculture, and this is one reason why economic development is often
associated with industrialization. An historical example would be the series of
innovations which raised productivity in the British textile industry in the eigh-
teenth century (see the Introduction).

Technological change and losers

Technological change is likely to create losers, such as those whose skills
become obsolete or who lose employment as a task becomes mechanized.
There can sometimes be a gender dimension. When agricultural or industrial
work is mechanized and becomes a more skilled occupation, female labour is
often replaced by male labour. The organization and political influence of the
losers can be important in determining the feasible pace of technological
change. Those who oppose technological change are often known as
‘Luddites’. This is in memory of a movement that started in Nottingham,
England in 1811 and spread rapidly over the next two years. The participants
(allegedly led by a Captain Ludd) smashed wool and cotton mills, believing
that mechanization had deprived them of employment and left people desti-
tute. The rising was brutally suppressed by the government and many of the
participants were executed or transported to Australia.
Between 1750 and 1850 the British political system continued to give
consistent support to innovators and those winning out from technological

Technology and Economic Growth 101

Figure 5.4 Technological change: industrialization

Industrial

output

Agricultural output

Technological change

in industry