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The paper discusses the diffusion of new technologies from the perspective of the classical economists and Schumpeter.After a comparison of the pre-and post-technical change long-period positions of the economy,we illustrate the process of transition between the two in terms of a two-sector model.Next,we t to a system with joint production.The fact that some products may be bads that need to be disposed of leads to a study of systems of production-cum-disposal.Finally,we investigate the selection pressure innovations exert on incumbent firms.An important message is that technical change cannot generally be studied within a partial framework of the analysis.