Technological change

A technological change is a term used in economics to describe a change in the set of feasible production possibilities.

A neutral technological change refers to the behaviour of technological change in models. A technological innovation is Hicks neutral (following Hicks (1932)) if the ratio of capital's marginal product to labour's marginal product is unchanged for a given capital to labour ratio. A technological innovation is Harrod neutral (following Hicks (1932)) if the technology is labour-augmenting .

Technological change is different to a technical change.