Technology shocks are events in a macroeconomic model, that change the production function. Usually this is modelled with an aggregate production function that has a scaling factor.
A technology shock affects an industry or firm's productivity, this may be a positive shock - increasing the output for a given set of inputs, or a negative shock - decreasing the output for a given set of inputs. Negative shocks are much less common than positive shocks as technology rarely moves backwards.
Famous quotes containing the words technology and/or shock:
“Our technology forces us to live mythically, but we continue to think fragmentarily, and on single, separate planes.”
—Marshall McLuhan (1911–1980)
“Civilized society is one huge bourgeoisie: no nobleman dares now shock his greengrocer.”
—George Bernard Shaw (1856–1950)