Hicks-neutral technical change

A Hicks-neutral technical change is a change in the production function

Production function

In microeconomics and macroeconomics, a production function is a function that specifies the output of a firm, an industry, or an entire economy for all combinations of inputs...

 of a business or industry which satifies certain economic neutrality conditions. The concept of Hicks neutrality was first put forth in 1932 by John Hicks

John Hicks

Sir John Richard Hicks was a British economist and one of the most important and influential economists of the twentieth century. The most familiar of his many contributions in the field of economics were his statement of consumer demand theory in microeconomics, and the IS/LM model , which...

 in his book The Theory of Wages. A change is considered to be Hicks neutral if the change does not affect the balance of labor and capital in the products production function

Production function

In microeconomics and macroeconomics, a production function is a function that specifies the output of a firm, an industry, or an entire economy for all combinations of inputs...

. More formally, given the Solow model production function,
a Hicks-neutral change is one which only changes .