1. Interpretations of Technological Change One definition of science is knowledge about nature that can be replicated and tested because it is published. It is also usually applied in universities and some companies. It uses ceteris paribus and the results can be generalized. On the other hand, technology is the non-codified application of knowledge and therefore difficult to reproduce or imitate. The connections between science and technology (henceforth S&T) have puzzled many historians and economists. One of the explanations of the relationship between science and technology is the simple linear model proposed by the economist Schumpeter. In his opinion, the relationship goes from science to technology and then to economics. The simplicity of the model has made it popular with politicians, suggesting that it is better to expand the budget to support science and basic research and development. However, this model may be better suited to late 19th century industries than to those of the 20th century and therefore no longer accepted as a representation of the relationship between science and technology. Bush's report, Science, the Endless Frontier, cited in (Brooks, 1994) further supports this view. It basically encourages politicians to support science because scientists will automatically know what is important to the world and technology will develop and follow. Schmookler analyzes the relationship between science and technology and economics, although it is similar to the linear model in that there is no role for business in these two theories of technological improvement; differs in the direction of the relationship. Shmookler concluded, based on economic and patent data, that innovation lags production and investment in some sectors such as…… half of paper…… amic Firm: The Role of Technology, Strategy, Organization and Regions, New York: Oxford University Press.Pavitt, K.L.R. (1991), “What Makes Basic Research Economically Worthwhile?”, Research Policy, vol 20, no. 2, pp 109-20.Rosenberg, N. (1994), "Scientific Instrumentation and University Research", chapter 13 in Exploring the Black Box, New York: Cambridge University Press. Schmookler, J. (1962), "Economic Sources of Inventive Activity", Journal of Economic History, Vol. 22, pp. 1-10; reproduced in N. Rosenberg (ed., 1971), The Economics of Technological Change, Harmondsworth: Penguin, chapter 5. Tidd, J., Bessant J. and Pavitt, K.L.R. (1997), "Developing the framework for an Innovation Strategy ” and “Pathways: Exploiting Technological Trajectories,” chapters 3 and 5 in Managing Innovation: Integrating Technological, Market and Organizational Change, New York: John Wiley