Localized and Biased Technologies: Atkinson and Stiglitz’s New View, Induced Innovations, and Directed Technological Change∗

This paper revisits the important ideas proposed by Atkinson and Stiglitz’s seminal 1969 paper on technological change. After linking these ideas to the induced innovation literature of the 1960s and the more recent directed technological change literature, it explains how these three complementary but different approaches are useful in the study of a range of current research areas– though they may also yield different answers to important questions. It concludes by highlighting several important areas where these ideas can be fruitfully applied in future work. JEL Classification: E25, J31, O30, O31, O33.