Innovation Models

Since the eighteenth century, the importance of the advancement of technological knowledge in the
economic development of capitalist society (Freeman 1988 Benavides 2004) stands out.
Adam Smith, in his book "The Wealth of Nations," explained the causes and consequences of
technological advance where the causes of changes in technological knowledge, generated as a
result of "the greatest skill of each particular worker [. ..] saving time commonly lost in passing from
one occupation to another and the invention of a large number of machines which facilitate and
abridge labor ". The consequences, technological advance was the factor that could lead to greater
well-being (Smith 1992, 11 in Benavides 2004).