1907 19-6 Technical knowledge The state of technical knowledge changes through time because of: -inventions embodiment of knowledge in capital learning by doing Research and development (R&D) patent systems address a market failure which otherwise would lead to there being too little R&D. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 19-6 Technical knowledge • The state of technical knowledge changes through time because of: – inventions – embodiment of knowledge in capital – learning by doing • Research and development (R&D) – patent systems address a market failure which otherwise would lead to there being too little R&D