University of British Columbia

Department of Economics

Economics 339 - Economics of Technological Change

Tuesdays and Thursdays, 5:00pm – 6:30pm

JANUARY 2024

Dr. Catherine Douglas Email: Catherine.Douglas@ubc.ca

Office: Iona Building Rm 015 Office Hours: Wednesday 11:30-1:30pm
(or by appointment)

Teaching Assistant: TBC

Email:
TA Office Hours: TBC

Course Outline
Summary:

The aim of this course is to study the role of technology in the economy: the ways that it
influences economic growth over time and how its characteristics and processes of change affect
individuals and groups in society. We will consider these questions in light of important
debates about the causes of technological change, the sources of knowledge creation that spur
innovation, externalities, market failure, and the implications of technological change in relation
to the distribution of income.

We will study the above questions in the context of economic history as well as in the
contemporary economy, and will look at some specific instances when technological changes
occurred that are seen to be crucial to the development of modern economies. These episodes
include the agricultural and industrial revolutions, education, creativity, and human capital
development; the development of the coal, iron and steel industries; the transition from sail to
steam, economic and social implications of technical change in Canada’s west coast salmon
canning industry; food production systems past and present; climate change; plastics, waste
management and consumer choice; as well as the implications of automation artificial
intelligence on the experience of work its potential effects on labour market dynamics.

This is a reading and writing intensive course. Students will be expected to read, understand
and discuss an extensive set of journal articles, texts, media and supporting lecture material that
will provide the context for learning about the conceptual and analytical tools used by
economists to investigate the causes and consequences of technological change over the longer
term. We will have several in-class discussions that help to facilitate students’ greater
understanding of the key source material for the course, thus encouraging students to keep up
with the readings through the term. It is expected that this will lead to a more enriched
experience in the course.

By the end of the course, students should expect to not only have a greater knowledge of
technological change, its contribution to the process of economic development, and the forces
fostering the creation of new knowledge, but to have also gained a deeper understanding of the
application of economic theory to problems and debates about technological change and
sustainable economic development in both the short and longer term.

IMPORTANT NOTICE: NO PHOTOGRAPHY, FILMING OR RECORDING OF ANY KIND

IS PERMITTED IN THE CLASSROOM (OR IN THE ONLINE ENVIRONMENT) DURING
OFFICE HOURS, OR DURING ANY COURSE RELATED ACTIVITIES WITHOUT
PERMISSION FROM THE INSTRUCTOR.

1
Required Texts:

Mokyr, J. (1990) The Lever of Riches: Technological Creativity and Economic Progress (New
York, Oxford University Press) – PDF available online

Braverman, H. (2002) Selected Chapters from Labour and Monopoly Capital: The
Degradation of Work in the Twentieth Century (New York, Monthly Review Press) Cost:
$27.70 or available online.

Brynjolfsson, E. and McAfee, A. (2012) Race Against the Machine (Lexington, Digital
Frontier Press) Cost: $16.20. PDF Available (TBC)

Required Readings: Course Readings available online or posted on Canvas.

Additional handouts in class and posted on Canvas

Required Media: Changing Education Paradigms (2012) Ken Robinson video

Around Cape Horn (Mystic Seaport, 1985)
King Corn (Mosaic Films Incorporated, 2007)
Charlie Rose Interview with Tim Wu (PBS, 2011)
Message in the Waves: Hawaii (BBC, 2005)

Course Requirements:

Grading Scheme:

Reading Summary – for small group discussion in class 10%

Gulf of Georgia Cannery Field Trip (TBC) 15 %

(Reflective Essay 10 % & Participation 5%; Date TBC,
a Saturday in early to mid – March)

Term Paper (approx. 3000 words) 35 %

(Topics must be chosen from those provided or approved
by the Professor, proposal due March 26th

Final Exam 35 %

Participation (viewing audio-visual material,

Field trip and in-class discussion attendance 5%

Total 100%

Note: Term Paper (is to be submitted via Turnitin. Paper copy due March 18th in class.

IMPORTANT INFORMATION

NOTE:
TEACHING AND LEARNING CONTEXTS FALL SESSION (W2023/24):
§ This course is intended to be held on campus. However, it may be necessary to shift to
the online context due to the ongoing COVID19 pandemic. The situation will be
monitored and a decision will be made by the University authorities to either remain on
campus or to be fully online with some on campus contact as identified below. This is not
intended to be a hybrid course.

2
NOTE: Students who have any respiratory/flu-like symptoms should not attend class in person.
Masks are not required in class.

§ Office hours will be held regularly and are intended to be held in person or on Zoom at
the time set or by appointment .
§ Participation is encouraged and accounted for in your grade as an incentive toward
keeping on top of the course lecture content, readings and other activities. As long as
students are available during class time or can ensure that they engage with the material as
is required this should not be a problem. Students are encouraged to speak with Professor
Douglas if they find they are struggling at any point in the course.

§ Students will be required to have the following capabilities in order to be successful in

this course:
§ Be available to participate in the course during the set times. The lectures will not
be recorded unless there are special circumstances yet to be determined or we are
forced to meet remotely due to a resurgence of the pandemic.

§ Lecture slides will be posted on Canvas and can be reviewed with the Professor
and/or TA during office hours or by appointment. Questions during and after class
are welcome as well as in office hours.

- Whether in-person, online or connecting remotely, students will need access to a reliable
internet connection with sufficient bandwidth to be able to:
§ Be able to download the content of the course reading package and other resources if
they have not purchased physical copies;
§ View and engage with the online audio-visual content;
§ Attend in person and/or make use of a webcam for meetings with Professor
Douglas and/or the TAs for the course;
§ Fully participate in any A/V screenings if not possible to watch in class, participate
in group discussions, and if the course ends of being held remotely, online
presentations and the final exam.

Important Notices:
§ Please ensure that the email address you have provided to the Registrar for the Students
Services System and on Canvas is one that you are monitoring as I will be using these
sites to communicate important information to you.
§ Lecture notes will be posted on Canvas but may not include full content depending on
copyright issues.
§ No photography, filming or recording of any kind is permitted in the classroom or
during office hours.
§ The best way to communicate questions and concerns to Professor Douglas is to do so
during class or office hours, whether in person or by virtual appointment. You may
share questions in class, ask after class or arrange to meet in my office during office
hours. Responses to email communications may be delayed due to the volume of my
emails, so should best be limited to urgent situations or to invited communications.
§ To ensure success in this course, students are expected to attend class regularly, to
participate in the formal and informal discussions, and to engage with the readings and
lecture material.
§ Concessions must be arranged prior to the due date of an assignment, exam or other
scheduled activity that has an evaluation component for the course, or as soon as
possible after the missed deadline. The concession must be arranged with the Faculty of
Arts’ Student Advising office or your respective Faculty Advising Office. Missed
assignments will be given a zero grade without documentation validated by the
students’ Faculty Advising office.

3
 § If a student is granted a concession such that the student is not required to complete an
assignment, the weighting for that grade will be shifted equally among the remaining
assignments.
§ Review of assignments or quizzes must be requested within one week of receiving it
back in class.

Term paper due date policy: Assignments are expected on time. If students know of a conflict
that will arise during the term, they should consult with Professor Douglas within the first two
weeks of term to discuss alternatives. Otherwise, the penalty for late submission of term papers
and assignments without prior arrangement is calculated by the formula: “The number of days
late squared.”

It is not acceptable for students to have others edit their papers, whether paid or unpaid. The
content of all work submitted for the course is expected to be entirely that of the student.

EXPECTATIONS:

The design of this course is based upon a view that scholarly reading, writing, and discussions
are learning. The point of attending class (even virtually), engaging in discussions, reading the
course materials, studying, and writing exams is to develop the capacity to think in ways that
deepen understanding – to develop attention and to reason, not just to absorb “facts” and
“ideas” and to store them in our memories. Computers can do the latter a lot better than
humans these days!

What makes humans different is our ability to master critical thinking, problem solving, written
analysis and analytical reasoning. It takes practice though, and ongoing challenges. It is my
view that the value of a university degree is to provide students with the skills, knowledge and
experience that enables them to understand the arguments of others, and to make coherent and
insightful arguments themselves. I feel strongly that our value as scholars, as future employees,
even more broadly, as citizens and human beings requires such abilities.

Success in this course will reflect the extent to which students engage with the extensive set of
course readings, the lecture material and other activities during the term. The expectation is that
students will take the necessary steps to gain a thorough understanding of the assigned
readings and lecture material in preparation for the class discussions, assignments, and the final
exam.

In particular, the final exam will involve mainly essay-based questions for which students will
be expected to illustrate their understanding of the theories, methodologies and evidence
presented in the course. Students will be expected to use economic reasoning learned during
the course in their exam responses. This includes formal representations (graphs, equations,
diagrams, etc…), including within the body of written answers, where relevant.

More generally, success in the course will require students show that they have understood the
relevance of the readings in terms of 1) their position within a more extensive debate; 2) the
historical and/or contemporary context of the issue that each of the papers is addressing; 3) the
theoretical perspective of the readings; 4) the methodology used by the author; and 5) the
author’s findings and conclusion(s). Students will also be required to integrate views,
arguments and evidence presented in other course material, whether in the form of scholarly
literature, videos, audio recordings, or other sources.

Assignments and other due date policies: Assignments are expected on time. If students know
of a conflict that will arise during the term, they must consult with Professor Douglas within the
first two weeks of term to discuss whether it is possible to accommodate the conflict. The
penalty for late submission of assignments without prior arrangement is calculated by the
formula: “The number of days late squared.”

4
I take issues of academic integrity and plagiarism seriously. It is not acceptable for students to
have others edit their papers, whether paid or unpaid. The content of all work submitted for the
course should be that of the student. Any assignments found to include plagiarized content will
be given an automatic zero and will be subject to disciplinary procedures in accordance with
Faculty of Arts and Vancouver School of Economics policies. Please see further information
about expectations, grading and Academic Integrity on pages 10-11 of this syllabus. Students
must also read the content on Academic Misconduct and complete the associated quiz posted
on the Canvas Module: Avoiding Academic Misconduct – For Courses with Research Papers.

Note: Any evidence of academic dishonesty or plagiarism will be pursued. The Vancouver
School of Economics has an Academic Integrity Coordinator who will investigate incidents
involving potential or suspected academic misconduct. Disciplinary action will be taken
where warranted.

Note: Any evidence of academic dishonesty or plagiarism will be pursued. Disciplinary action
will be taken where warranted.

LEARNING OBJECTIVES AND OUTCOMES:

§ To deepen student engagement with disciplinary research and debates associated with
technological change;
§ To be able to identify and apply economic theories and concepts associated with
technological change, economic growth and sustainable development;
§ To be able to identify the United Nations’ Sustainable Development Goals and the
potential role of technological change;
§ To deepen student understanding of the process of technological change and the forces
that both facilitate and hinder it;
§ To understand the role of institutions in the process of technological change and
economic history, both in the past and present;
§ To gain an historical perspective on the contribution of technological change to
economic growth and the standard of living;
§ To understand and critically assess the debates about the role of markets in supporting
or thwarting technological change;
§ To understand arguments and debates about why new technologies may not lead to
sustainable practices and livelihoods;
§ To consider the extent to which social and political forces determine the ways by which
technology and markets interact in the economy;
§ To be able to identify the links between technological change and the distribution of
income;
§ To develop and extend critical thinking skills associated with their economic course
work:

o To be able to identify relevant theoretical relationships;

o To be able to identify, explain and apply methodologies used by scholars to
analyze problems;
o To critically assess the arguments made by scholars about economic relationships
and outcomes;
o To critically assess their own preconceptions and beliefs;
o To approach complex problems from the perspective of a wider range of
approaches;
o To be able to identify and articulate the extent to which theories and methods in
the scholarly literature are supported, contrasted or even contradicted by what is
observed and otherwise learned from online, virtual experiences and/or other
course media and resources;
o To be able to identify, evaluate, and articulate potential economic approaches
and outcomes from decisions made in the broader community in relation to
technological change.
•
5
 UBC POLICY STATEMENT ON HARASSMENT, SEXUAL VIOLENCE,
DISCRIMINATION, AND ACADEMIC FREEDOM

UBC provides resources to support student learning and to maintain healthy lifestyles but
recognizes that sometimes crises arise and so there are additional resources to access
including those for survivors of sexual violence. UBC values respect for the person and
ideas of all members of the academic community. Harassment and discrimination are not
tolerated nor is suppression of academic freedom. UBC provides appropriate
accommodation for students with disabilities and for religious and cultural observances.
UBC values academic honesty and students are expected to acknowledge the ideas
generated by others and to uphold the highest academic standards in all of their actions.
Details of the policies and how to access support are available here
(https://senate.ubc.ca/policies-resources-support-student-success )

TOPICS AND READINGS

WEEKS 1-2

Note: All timelines are estimates:

1. THE ECONOMICS OF TECHNOLOGICAL CHANGE: INTRODUCTION

Lecture Notes
Readings:
GLENN, D. (2010) ‘Divided Attention: In an age of classroom multitasking, scholars
probe the nature of learning and memory,’ Chronicle of Higher Education: The Review
(Downloaded from http://chronicle.com/article/Scholars-Turn-Their-
Attention/63746/). Available on Canvas course website (Course Readings)
UNITED NATIONS’ Sustainable Development Goals Handout (Source URL:
http://i0.wp.com/www.un.org/sustainabledevelopment/wp-
content/uploads/2015/01/SDGs_poster_new1-e1453327786483.png?resize=1200,726

WEEKS 2-3

2. THE ECONOMICS OF TECHNOLOGICAL CHANGE: THEORETICAL

PERSPECTIVES AND METHODOLOGY
Micro, macroeconomic and “grand perspectives” theories of technological change and
economic growth. Context of the global economy past and present.
Lecture Notes
Readings and other sources:
H. BRAVERMAN (2002), Labor and Monopoly Capital, New Introduction; Forward;
Introduction
R. SOLOW (1957), "Technical Change and the Aggregate Production Function," The
Review of Economics and Statistics, pp. 312-20.

CASE STUDY I: FROM SAIL TO STEAM: ADOPTION AND DIFFUSION OF A

NEW TECHNOLOGY

C.K. HARLEY (1971), "The Shift from Sailing Ships to Steamships, 1850-1890: A Study of
Technical Change and its Diffusion," in D. N. McCloskey, ed., Essays on a Mature
Economy: Britain after 1840, pp. 215-234.
VIDEO: JOHNSON, I. (VIDEO) Around Cape Horn (Mystic Seaport, 1985) (from original
16 mm footage shot by Irving Johnson, 1929).

6
 S. ENGERMAN, "Human Capital, Education, and Economic Growth," in R. Fogel and S.
Engerman, eds., The Reinterpretation of American Economic History, New York, Harper &
Row, Publishers, 1971, pp. 241- 256 (out of 494).
MOKYR, J. (2002) ‘Technology and the Problem of Human Knowledge’ in The Gifts of
Athena: Historical Origins of the Knowledge Economy (Princeton: Princeton University
Press, pp. 1-27
VIDEO: Ken Robinson Changing Education Paradigms (2012)

WEEKS 4 - 5

CASE STUDY 2: AGRICULTURE, INSTITUTIONS AND ECONOMIC GROWTH:

SOCIAL AND ECONOMIC IMPLICATIONS

Lecture Notes
Readings:
ALLEN, R.C. (2004) “Agriculture during the Industrial Revolution, 1700-1850,” in The
Cambridge Economic History of Modern Britain, vol. I (Cambridge: Cambridge University
Press).
MARX, K. (1867) Capital, Vol. I, Part VIII, Ch 26-31 “Primitive Accumulation” to
“Genesis of the Industrial Capitalist” (URL:
https://www.marxists.org/archive/marx/works/1867-c1/index.htm

Lecture Notes
Readings:
BRYNJOLFSSON, E. AND MCAFEE, A. (2012) Race Against the Machine (Lexington,
Digital Frontier Press).
VIDEO: BBC Newsnight (2014) ‘Second machine age: Will robots put us all out of
work?’ (April 23rd, 2014 (http://www.bbc.com/news/technology-27125728)
MARX, K. (1844) Economic and Philosophical Manuscripts, “Estrangement” pp, 1-8
(downloaded from
http://www.marxists.org/archive/marx/works/1844/manuscripts/labour.htm

WEEK 6
CASE STUDY 3: ECONOMIC AND SOCIAL IMPLICATIONS OF
TECHNOLOGICAL CHANGE IN THE B.C. SALMON CANNING INDUSTRY

Lecture Notes
Readings:
MARX, K. (1867) Capital, Vol. I, Part IV, Ch. 15 “Machinery and Modern Industry”,
Sections 4 – 6; (URL: https://www.marxists.org/archive/marx/works/1867-
c1/index.htm
NEWELL, D. (1988) ‘Rationality of Mechanization in the Pacific Salmon-Canning
Industry before the Second World War,’ The Business History Review, Vol. 62, No. 4, pp.
626-655.

WEEKS 7-8
3. DIFFUSION OF NEW TECHNIQUES: MARKET STRUCTURE AND
INSTITUTIONS

CASE STUDY 4: HYBRID CORN

Lecture Notes
Readings:

7
 GRILICHES, Z. (1960), "Hybrid Corn and the Economics of Innovation," Science, vol. 132
(July 29) pp. 275-280.

Video:
AARON WOOLF, CURT ELLIS AND IAN CHENEY (2007) King Corn (Mosaic Films
Incorporated). Screened in Class – otherwise available for purchase online.

Video: Charlie Rose Interview with Tim Wu

http://www.tv.com/shows/charlie-rose/watch/mark-halperin-and-john-heilemann-
tim-wu-edmund-morris-1976689/
WEEKS 9 - 10

4. MARKET STRUCTURE, KNOWLEDGE CREATION AND INFORMATION FLOWS

CASE STUDY 5: DEVELOPMENT OF THE IRON AND STEEL INDUSTRY, PAST

AND PRESENT
Lecture Notes
Readings:
ALLEN, R.C. (1983) "Collective Invention," Journal of Economic Behavior and Organization,
4, 1983, pp.1-24.
DAVID, P. (1985) “Clio and the Economics of QWERTY,” AEA Papers and Proceedings,
vol. 75 (2), pp. 332-337.

WEEKS 11 – 12

5. TECHNOLOGY AND THE ENVIRONMENT: MARKETS, EXTERNALITIES AND

POLICY FAILURE

CASE STUDY 6: CLIMATE CHANGE

Lecture Notes
Readings:
HELM, D. (2008) ‘Climate-change policy: why has so little been achieved?’ Oxford
Review of Economic Policy, Volume 24, Number 2, 2008, pp. 211–238.

UN Sustainable Development Goals

CASE STUDY 7 – PLASTICS

Lecture Notes
Readings:
ANDRADY, A.L. AND NEAL, M.A. (2009) ‘Applications and Societal Benefits of
Plastics,’ Philosophical Transactions of the Royal Society, 364, pp. 1977-1984.
VIDEO: Message in the Waves: Hawaii (BBC, The Natural World).
https://www.youtube.com/watch?v=olUO47cGNgc

WEEKS 13-14

6. WHO GAINS FROM TECHNICAL CHANGE? WHAT DETERMINES THE

DISTRIBUTION OF ITS BENEFITS?

Lecture Notes
Readings:
8
 W. LEONTIEF, "Technological Advance, Economic Growth, and the Distribution of
Income," Population and Development Review, 1983, pp. 403-10.

Additional Suggested Resources:

BRYNJOLFSSON, E. AND MCAFEE, A. (2014) The Second Machine Age: Work, Progress,
and Prosperity in a Time of Brilliant Technologies (New York, W.W. Norton).

7. FINAL SUMMARY OF COURSE & FINAL EXAM PREVIEW - CONCLUDING

REMARKS