Final answer:
Technology advances exponentially, building upon preceding developments, leading to faster adoption and lower costs. Countries with strong institutions for technology growth are more likely to benefit from and contribute to these rapid advancements.
Step-by-step explanation:
According to Anderson and Tushman's evolutionary model of technological change, technology develops through breakthroughs that create a cascade of enhancements and new generations of products. For instance, the transition from floppy disks to Zip disks and eventually to flash drives illustrates the generational improvements in storage technology. The advancement of technology is exponential because new technologies build upon the capabilities of previous ones, enabling faster adoption, lower costs, and increased productivity. Additionally, fast-moving high-technology industries like biotechnology or semiconductor design may find patents less significant due to the rapid pace at which technology advances.
Moreover, countries with robust institutions and infrastructure for technological growth are positioned to absorb new technologies swiftly, with significant cost benefits. This infrastructure, coupled with the adoption of cutting-edge production methods, spurs further advancements. Consequently, productivity growth is sustained as technological transformation permeates various sectors, making additional innovations more achievable.