Technology: Not All Inventions Are Created Equal

"The Economy at Light Speed," Annual Report, 1996 (Text or PDF)

Technology
Not All Inventions Are Created Equal

Dallas Fed Chief Economist W. Michael Cox turns the technology spotlight on the microprocessor.

Top 10 Inventions and Discoveries
1.	Electricity	1873
2.	Microprocessor	1971
3.	Computer	1946
4.	DNA	1953
5.	Telephone	1876
6.	Automobile	1886
7.	Internet	1991
8.	Television	1926
9.	Refrigeration	1913
10.	Airplane	1903

From chewing gum to electricity, all inventions are an effort to raise our living standards. A few make it; most don't. But some inventions are clearly more earthshaking than others. Perhaps the best way to judge an invention's significance is by its extent of spillovers—connections to other goods and services that it either makes possible or makes cheaper to produce. View our list of Top 10 Inventions and Discoveries of modern times ranked according to spillovers generated. What shouldn't be overlooked is that four of the top 10 are relatively recent—from the past 50 years.

In our time, it's the microprocessor—the tiny "brain" of the personal computer—that's producing spillovers and spawning waves of new and improved products. These little electronic marvels make hundreds of other modern creations possible—from fax machines and automatic tellers to air traffic control systems and the dinosaurs of Jurassic Park. The microprocessor is adding "smart" features to many everyday products. Today's cars, for example, have more computing power than the lunar landing module of the Apollo 11 mission that put Americans on the moon. And even more applications are just over the horizon, as time and imagination point us to new ways to use microprocessors.

Microprocessors at Work
–	Navigate air traffic in our skies	–	Chart 3-D seismic surveys used in oil exploration
–	Guide lasers used to cut metal, diamonds and corneas	–	Locate a child in distress
–	Read zip codes and sort mail	–	Control temperature and time in microwave ovens
–	Manage weather-tracking systems that span the globe	–	Design new drugs
–	Create special effects in movies	–	Fly planes
–	Scan prices of goods in checkout lines	–	Mix paint
–	Keep inventories and records	–	Translate languages
–	Track packages at carrier superhubs	–	Coordinate traffic lights
–	Route phone calls worldwide	–	Settle transactions between customers
–	Run copiers and fax machines in the workplace and home	–	Monitor optical networks inside dams
–	Direct robots in automobile manufacturing plants	–	Improve the functioning of our cars
–	Reduce static and interference in cellular transmissions	–	Identify us by our fingerprints, iris, voice or scent
–	Operate automatic teller machines	–	Teach parrots to talk
–	Pilot sewing machines in custom-fit blue jeans factories	–	Connect people and information over the World Wide Web

W. Michael Cox is a senior vice president and chief economist at the Federal Reserve Bank of Dallas.

SUGGESTED CITATION:
Cox, W. Michael (1999), "Not All Inventions Are Created Equal," Federal Reserve Bank of Dallas Expand Your Insight, February 1, http://www.dallasfed.org/eyi/tech/9902equal.html