Technological Innovation and Economic Growth
Unit 4 · Lesson 4.6 · Last updated June 2026
A 45-minute lesson where students read about evidence-based innovation policies, then participate in a role-based simulation exploring how AI and new technologies create varied costs and benefits for business owners, employees, and the broader economy.
Overview
Through a reading and a simulation, students learn how investments in technological innovation drive economic growth — and that innovation comes with costs and affects people in varied ways, particularly in the short run. Both public and private sector investment in technology are examined. Note: In Lesson 4.7, students will use what they've learned across Unit 4 to propose a project aimed at improving the standard of living in their community — this lesson sets up that task.
Learning Objective
- Analyze the costs and benefits of investing in technology in the short run and the long run.
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Materials
- Instruction Slides (display during class period)
- Reading pp. 4–5 (1 copy per student)
- Student Handout p. 6 (1 copy per student)
- Suggested Responses pp. 13–14 (1 copy for educator use)
Simulation Kit (Class Set — 1 per group of 4 students)
- Six-sided die (or a digital die app) — 1 per group
- Scenarios and Outcomes pp. 7–12 (1 copy per group, separated by role)
Lesson Sequence
Slides 2–3
- Before students arrive: move seats into groups of 4 (groups of 3 as needed), facing one another. As students enter, divide them among the groups.
- Display Slide 2. Instruct students to consider the question on the slide. Call on several students to share and supplement responses as needed. (Additional educator tips and suggested answers are in the notes section throughout Instruction Slides.)
- Proceed to Slide 3. Identify the learning objective and tell students that both the public and private sectors invest in technology — both will be discussed in this lesson. Alert students that in Lesson 4.7, they will use what they've learned in Unit 4 to propose a project aimed at improving the standard of living in their community.
Slides 4–17
- Progress through Slides 4–5. Remind students that, as with any decision, investing in technology involves costs and benefits. Identify GPS as an example of government (public) investment in technology. Click to reveal the questions on Slide 5 and allow a moment for peer discussion.
- Progress through Slides 6–7. Briefly identify short- and long-term benefits from government investment in GPS research.
- Display Slide 8. Use the information to acknowledge that governments and private firms — working independently or in public-private partnerships — must determine when and how much to invest in technology.
- Proceed to Slide 9. Remind students that the cost-benefit principle requires considering the full costs of a decision, and investment in technology is no different.
- Display Slide 10. Distribute 1 copy of Reading to each student. Click to reveal the text and tell students to follow the instructions on the slide. Allow approximately 9 minutes.
- After approximately 9 minutes, debrief the reading as a class. Use Slide 11 and Suggested Responses as needed.
- Progress through Slides 12–13. Explain that decision-makers in different roles have varied perspectives on investing in technology. Instruct students to consider the question as they watch the video clip. Play the video. Debrief as a class.
- Advance to Slide 14. Tell students that private firms must also decide when and how much to invest in technology. Distribute 1 copy of Student Handout to each student and instruct them to read the introduction. Click to reveal: direct each group of 4 to assign roles so 1 student plays each role. (Groups of 3 will have 1 student take on both Employee or both Business Owner roles.) Click to reveal remaining text — tell students to circle their role on Student Handout. Emphasize that students remain in their role throughout the simulation, though the industry will change with each scenario.
- Display Slide 15. Use the text to explain how the simulation progresses. Emphasize that outcomes read aloud by Outcome Readers depend on whether their partner rolled an even or odd number. Distribute 1 Simulation Kit to each group. Instruct "Employee (Outcome Reader)" and "Business Owner (Outcome Reader)" students to have their relevant sheet in front of them; die rollers share the die. Tell students to begin. Circulate for 8 minutes, answering questions and ensuring students record who was helped and hurt in each scenario. Leave at least 7 minutes for the debrief.
- After 8 minutes, tell students to gather Simulation Kit materials into a pile. They will not use them again.
- Proceed to Slide 16. Click to reveal the first 2 debrief questions one at a time. Call on students from both roles to illustrate the various possible experiences. Emphasize positive and negative effects that students within the same role experienced. Click to reveal the remaining 2 questions and debrief as a class. (See Suggested Responses for possible answers.)
- Display Slide 17. Instruct students to briefly discuss the prompt with a peer. Call on several students to share.
Slides 18–19
- Progress through Slides 18–19. Instruct students to write their response to the question on Slide 19 on the reverse of Student Handout (or on a half sheet of paper).
- Collect handouts and review summarizer responses for misconceptions or gaps. Address at the start of the next lesson. Remind students that in Lesson 4.7, they will propose a government project aimed at improving the standard of living in a community — they should review the first 3 learning objectives on Unit 4 Overview to prepare for the upcoming summative assessment.
Aligned Standards
Voluntary National Content Standards in Economics
What Educators Are Saying
If you are a new teacher of economics, using simulations is essential! Yes, it requires some prep work but it is worth it!
One of its greatest strengths is that it avoids presenting technological innovation as simply good or bad. Instead, it encourages students to think critically about the tradeoffs involved and consider how different groups may be affected in different ways.
The simulation gives students a chance to explore important economic concepts, such as how technology can increase productivity while also affecting jobs and businesses in different ways.