Productivity. It is central to the new theories of economic growth although it has long been taken as

important. Schumpeter* gave a central role to it in his theory of economic growth. Recent eco-

* Schumpeter, Joseph Alois (1883-1950) — Professor of economics.

П р о и с х о д и т

Такой

о б м е н?

Nomics has been preoccupied with the incentives for innovation, in a world where the benefits of it

are inevitably shared: a company that invents a new drug obtains some profit, on account of the

Patent system. Even that is limited in duration. But there are many innovations that cannot be

Patented. The idea of telephone banking, for example, has been widely copied. That replication is

An important development for the benefit of consumers, but does it diminish the likelihood that

such ideas will flow in future? The existence of a first mover advantage is clearly important; allowing

The innovator to capture profits from an early start in an industry is important.

Commentary and Notes to Text 13.7.1.2

Incentive for innovation — стимул к новаторству

Replication — копирование

First-mover advantage — главное преимущество

To capture profits — извлекать выгоду

b) Look at Figure 13.2 and answer the question: Why does employment in footwear and clothing

make only 21.4% in businesses with 1000 and more workers while the rest 78.6% work in small enterprises

in the UK?

Timber and wooden furniture 2.5