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And Jones, D. , 'The innovation process in the gas industry', National Institute Economic Review, no. 73 (London: August 1975). [14] Usher, A. , 'Technical change and capital formation', in Rosenberg, N. ), The economics of technological change (Harmondsworth: Penguin, l97I ). Commentary John Langrish Ray's paper provides a fascinating and wide-ranging account of the complexities of the innovation process, in terms of effects as well as causes. This paper and Bela Gold's paper should both act as a warning to those who like to discuss the processes of technological change in terms of four boxes with interconnecting arrows.

This may have been largely the result of the advance in medical sciences, although industry must have helped greatly. Although the vaccines and other products for achieving the present state of affairs are unlikely to have added more than rather modestly to industry's business, the general welfare implications of the advance are enormous and practically incalculable. Medical techniques have been successfully applied in agriculture as well. 1 Deaths per million children• from four diseases Period'> Scarlet fever Diphtheria Whooping cough Measles 1870 1880 1890 1900 1910 1920 1930 1939 1949 1959 1969 2258 1575 572 331 224 84 48 27 3 0 0 871 709 781 872 491 439 294 287 30 0 0 1405 1349 1163 1003 756 473 360 183 81 1109 988 1234 1184 874 675 357 149 47 2 6 • Under 15 years old.

ADMINISTRATION AND GOVERNMENT Consider the following two situations: A seventeenth-century ordinance on the French cloth industry prescribed that 'if a cloth weaver intends to process a piece according to his own invention, he must not set it to the loom but should obtain permission from the judges of the town ... '[ 51 'The special importance of Birmingham in the eighteenth century arose just from the fact that it was not like one of the older towns with 10 Industrial Innovation their guild structure ...

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