Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 14

Many believe that technology is very costly to create, but cheap to transfer. For example, think of the personal computer: The technology underpinning the personal computer took a generation of time and a ton of money to create. However, now that the personal computer has been created, it is easy for others to purchase and reap the benefits. Given this insight, what do you believe will be the growth implications for the U.S. (traditionally more apt to create new technology) and China (traditionally more apt to adopt technologies created elsewhere)?