Economic theories misfit for technology adoption

An automobile engine partly opened and colored...

An automobile engine partly opened and colored to show components. (Photo credit: Wikipedia)

By George Mattathil – Joining the chorus on the failure of economics theories (partial list below)…

Current economic theories may be adequate for Tulip Trading, but they are grossly inadequate when popular fascination is with Google Glass and Drone Delivery [CNN].

The primary driver in modern economy is technology. Each technology has its own intrinsic characteristics that limit and constrain its use and applications in commerce by humans. Current economic theories, financial systems and legal principles were developed in simpler times to constrain, limit and control human activities related to innovations and novelties – starting with tulips.

For each primary technology, there are clusters of associated technologies that also need to be integrated into the economic, social and political activities for them to be effective. Economic theories are the means by which these technology adoption cycles are implemented. But economic theories and financial systems do not factor in the natural potential and limits of the emerging technologies and resistance generated by technologies currently in use. Steam engine, railroads, internal combustion engine, jet engine, telephone are examples of past large scale technology  adoption cycles.

The constraints imposed on the technology adoption cycles by economic theories more often than not inhibit their adoption, turning progress with them in fits and starts — and often in bubbles.

We need better ways of managing, introducing and propagating innovations, especially innovations with technology, into the economy.™¦


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