The creative response in economic development. The case of information processing technologies in US manufacturing, 1870-1930.

This paper presents a theoretical framework along "Classical" lines in which Schumpeter's concept of "Creative Response" is linked to a theory of induced innovation and the concept of technological regimes. We devote particular attention to the role of indivisibilities between factors of production. On the basis of this framework, we study the adoption of early information technologies, such as typewriters, calculators or Hollerith machines in US manufacturing in the period between 1870 and 1930. We show how the presence of a distinct bias in technical change in US manufacturing led to the opening of a window of opportunity for early information technologies, and how the presence of this bias influenced the technological search and adoption process of firms and how this found its final reflection in the rules and heuristics of the new regime.