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)
“The pointless ferocities of intellectual life shock businessmen, who kill only to eat.”
—Mason Cooley (b. 1927)