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==Significance==
Identifying ''investment-specific'' technological progress within an [[economy]] will determine how an individual behaves in reaction to new technology, i.e. whether the individual will invest their [[savings]].<ref>{{Cite journal|last1=Gort|first1=Michael|last2=Greenwood|first2=Jeremy|last3=Rupert|first3=Peter|date=March 1, 1999|title=How Much of Economic Growth is Fueled by Investment-Specific Technological Change?|url=https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/1999-economic-commentaries/ec-19990301-how-much-of-economic-growth-is-fueled-by-investment-specific-technological-progress.aspx|journal=Economic Commentary|issue=3/1/1999 |publisher=Federal Reserve Bank of Cleveland|pages=1}}</ref> If "investment-specific" technological change is the main source of progress in an [[Industry (economics)|industry]], then the individual would invest in firms to purchase and develop new capital, as technological improvements result in improvements to the goods available to consume. Firms may also choose to train current employees in the new technology or subsidize the education of new employees in the operation of the new technology. As such technological progress has an impact upon the labour market.<ref>{{Citation
| last=Krusell | first=Per
| title= Investment-Specific R and D and the Decline in the Relative Price of Capital
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