Technological innovation has been one of the most important causes of economic growth. Explain what embodied technological progress is and discuss its relationship to capital accumulation.

Embodied technological progress refers to the incorporation of new and more productive technologies into new physical capital equipment or machinery. Capital accumulation is the growth of capital assets, like plant, machinery, buildings, or equipment, that contribute to the production process in an economy. The two concepts are closely related, as embodied technological progress often leads to capital accumulation when businesses acquire new capital to exploit technological advancements. Furthermore, capital accumulation can drive embodied technological progress, as firms invest in research and development to create new technologies that can be incorporated in their capital stock. This cycle of technology improvement and capital accumulation fuels economic growth.