Abstract

Technological change is widely studied in economic discourse, dominated by an “industrial perspective” in which scientific and engineering advances are categorized by, and analyzed in the context of, industrial classifications. The present study compares this perspective with the alternative approach of studying the effects of scientific advances onproducts (goods and services) in the context of the functions those products serve. Using a function-based classification scheme, data on the economic effects of scientific advances are developed from articles appearing in business journals. These data present a different picture of evolutionary economic change, which may shed additional light on its causality.