How Technological Advancement Leads To Economic Growth

technology and economic growth
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Introduction

It is accepted by the economy that the growth of the economy has only become possible because of technology. It increases the efficient production of more goods and services in the organization. The new technology is codified knowledge in the form of routines and protocols. Technology helps to get enough knowledge about the use of economic resources to produce goods and services more efficiently. The economic growth has increased and is becoming efficient due to the advancement of technologies. In business, starting from production to the profit of the business got advanced due to technologies. It has also helped in spreading the business all over the world. Technological advancement also brings a change in the total productivity of the business which is positive. A good change is good for the business for the productivity and the profit of the business. An improvement in technology results in a requirement for less costly inputs. Rapid growth can be achieved through high technology levels. Technology is the primary source of economic development and the development of various technologies is very important for the growth of underdeveloped countries. Economic development also deals with the social well-being of people and the economic growth of market production. Technology development is important in economic growth at the macro level and profits of the firm at the micro-level. Social development can take place when there is sustainable growth in society.

Discussion

Technology saves money and time to deliver and produce goods or services within time and keep the profit of the business constant. It contributes to the business output with a large number of products and their services. It has increased the division of labor and job specialization among the workers that means appointing the right person for the right job that makes the work done in time and efficiently. It has also contributed to accessing natural resources and using them in all possible ways which are benefiting both the governments and the economy of the country. Inventions and innovation play an important role in the development of technology and the development of the economy. It also says that the economic growth in terms of production has advanced due to labor, capital, and technologies. Economic development is the country’s situation where the GNP and real per capita income are increasing with the sudden changes in all sectors of the economy. It means the growth of the economy with its structural changes.

Achievement Through Technologies-

  • The aim of maximizing the outputs.
  • Reducing the cost of production.
  • The aim is to attain higher growth rates.

The role of technology in economic development got more importance due to the labor shortages in the Western countries which were resulting in a lack of production.

The development and growth are different but both of them are needed when it focuses on economic development. It is helping in the production of goods all over the country. Even the technology has introduced online applications through which there are sizes and specifications according to the choices of everybody all over the world. We can sit at home and buy things that we want that will increase the profit and also will bring growth in the economy of the country. Social health also develops by increasing the wealth and the income levels in the economy which can also create problems on the other side. Schumpeter observed that technology innovation is the only determinant of progress in the economy. He was motivated by the fact that economic growth and the innovation of technology are closely related to one another. The theory says that if one economy is the technology innovator and then another is a technology adopter and will maintain lead in per capita related to another one.

The Content Of Technological Progress-

  • Technological improvements can bring improvement in the quality of the products.
  • The progress of technology in one sector can also create opportunities in the other sectors as well.
  • The development can also lower the cost of goods that are produced because of technological progress.
  • Technical progress can also implement important advantages to the society and its people present.

The utilization of resources and their growth has been highlighted in covering social, economic, and political development to bring changes and improvements in the standard of living of all the populations in the developing and under-developing countries. To get free assistance from renowned writers, take coursework help online from SourceEssay experts anytime.

Importance Of Technology In Economic Development

  • Discovery Of Natural Resources

Modern technology helps human beings in utilizing the natural resources that are hidden in seas, lands, and mountains. If there was no advancement in modern technology then it was not possible to explore oil, iron, copper, gas, and gold.

  • Agricultural Revolution-

The technology has helped to introduce fertilizers for plants and agricultural land, tractors, the invention of High Yield seeds, threshers, and pesticides. The revolution resulted in the cultivation of good crops and became a profitable profession and helped in putting an end to the shortage of food and grains.

  • The Rise In Productivity-

Technology has helped in developing and producing at a higher rate in the economy. It has been achieved through proper utilization of human resources and using modern techniques in the production sector of the Indian economy.

  • Long Term Process

The growth of an economy is a long-term process that involves a longer period and the short-term process helps in increasing income (national) for some years which is not considered as the economic growth of the country.

It is said that technology and economic growth in countries and regions helps in the efficient production of better goods and services. The whole process through which technology is developed and used in the process of production is complex. Technology information doesn’t only increase the richness and wealth of the country but also gives the business a chance to create a history that they were unable to do for such a long time. Most people believe that the innovation of technology and economic growth are linked to each other. It also does not allow us to use our full capacity to work which can lead to destruction tomorrow. Technology includes a change in the supply of resources, in the skills and efficiency, demographic composition, and in an institutional and organizational setup. The technology also includes the purchase of technology without cooperation with the source. It is also a process of installing and introducing new technologies, one product to the market by an effort given by the whole organization.

Acquisition routes are-

  • Internal technology acquisition happens through the creation from the internal part of the organization.
  • External technology acquisition is the technology that is being developed by others to use in the organization.
  • Combined sources of acquisition are when it includes the combination of both internal and external activities.

An Innovative economy needs a connected set of markets with non-market institutions to make the process work effectively and efficiently. The government also needs to have strategies to foster the economic system with innovations. The efficiency of labor helps in the expansion of the industries across the globe which develops the economy of the country largely. The technology is also allowing research into every sector of business so that it can be beneficial in all sources of business. The technology related to information is the most important element in the growth of international business and market growth. The technology gives the chance to share information and conduct the business within a short period. You can also ask for write my dissertation work for technology impact on economic growth from SourceEssay team.

Advantages-

  • The technology saves time and increases the efficiency of work in the business.
  • It has improved communication all over the world and people can connect instantly.
  • Technology helps to reduce cyber crimes and risks by using Artificial Intelligence.
  • It has increased the efficiency of tasks making them better and productive.
  • It has also helped in avoiding inaccuracies and duplicates.

This technology helps in improving the economy of the countries and making it much more efficient and productive.

Disadvantages-

  •  Being dependent on technology is changing lives in a not-so-good way.
  • Technology is leading to automation which results in fewer jobs for human beings.
  • It is expensive for everyone to afford.
  • The technology can also lead to a bigger impact on the process.

Remedies For Economic Development-

  • Growth Of Export-

The production of goods that have a comparative advantage in their production will solve the limited market size.

  • Industrialization-

The improved equipment of production helps in raising agricultural production and the establishment of the industries helps in meeting the basic needs of all business sectors in the economy.

  • Self-Management Strategy-

The country system needs to be adopted to coordinate and to help with the production of economic development in the country.

Impact on technological innovations in Sustainable economic growth-

  • Education.
  • Agriculture.
  • Health.
  • Construction.
  • ICT.

The impact of innovations has been accelerating the trend towards urbanization all over the world that will help to make the country one step forward to being a developing country. The economic growth will increase due to the advancement of technology that will result in less poverty and portraying the country more clearly and will be able to compete with other developing countries. There is a need for development in technology in the 21st century otherwise it will not be possible to keep pace with other countries both technologically and economically and the effort of technological advancement is getting better with time.

The impact of technology on global economy also plays a very important role as it reduces the manpower in an organization and it also reduces the demand for low-skilled employees. Automation and digital advances also reduce the number of employees of an organization as they perform the tasks automatically. The wage inequality was also identified due to the implementation of new technologies. While monetary inequality has increased in many countries, inequality between countries has been declining as the fast-growing economy is still narrowing the money gap through the high-income economy. Technology poses new challenges to this economic integration. Productivity-driven growth in the emerging economy has been a major factor in the partnership, thanks to their comparative advantage in hard-earned production from their large pools of low-skilled, low-wage workers. Such comparative advantages are eroded by the low self-employment of low-skilled workers, creating the need to create alternatives to growth in line with technological change. Transformation is also needed at the global level, although the key component of the technology – and global trade – the system is more efficient and all in line with national policy. Not only should the past benefit from establishing a system of international law-protected trade protected from the wind, but new sectors should be established in the next phase of global trade led by digital flow to ensure open access and fair competition. Reasonable immigration policies can complement national policies, such as pension reform and lifelong learning, in reducing the effects of aging. The growth in national income in developed countries cannot be attributed solely to finance. Kindleberger noted that much of this growing production is due to technological change. Robert Solow estimated that technological change slowed about 2/3 of U.S. economic growth. after allowing for staff growth and financial stock.  Get to know much detail on global trade from term paper help, a brilliant team of Sourceessay anytime.

Technology can be considered a major source of economic development and various technological changes contribute significantly to the development of developed countries. The second figure shows that innovation is saving workers and R’s shows that the same product can be produced with less input but labor savings are greater than in the capital. The third figure shows that this innovation saves money and R’s shows that the same output can be produced with less input after a technological change but saves more money than workers.

It is thought that technological advancement is far more important than capitalization. But monetary policy alone can bring economic development to a limited extent and progress can be halted if there is no technological change. The country cannot always rely on technology imports. The nation that spends the most on scientific and technological research will tend to grow faster than any other country that collects more money but spends less on technology.

The digital revolution stems from what economists who study scientific advances and technological changes call for general-purpose technologies, that is, that have the potential to constantly evolve, have a continuous branch and grow productivity in all sectors and industries. Such modifications are rare. Only three previous technologies found this difference: steam engine, electric generator, and printing press. These changes bring great long-term benefits. The steam engine, originally designed to extract water from the mines, exposed the railways and industries using electric power. The profits made when farmers and traders bring their goods from inland to the coast facilitate trade. the process of technological advancement involves uncertainty fundamentally. The processes are full of surprises. There are winners and losers. And often, it is impossible to predict who will win. Schumpeter was right when he said that technological advancement is a sickening process of creative destruction. I have long believed completely in this. The basic uncertainty involved in technology development seems to be the basic reason why detailed, long-term planning is limited to frustration and often catastrophic, and why, to get faster technology, society often needs different organizations trying different bets. Sadly, this problem has been suppressed in many modern analyzes. there is a huge difference in all technologies and industries in the way technology is developed. The general practice here usually puts a person in trouble. So think about the importance of copyright. Patents are very important in pharmaceuticals and some areas of good chemical products, but in some high-tech industries, it can be seen that firms can make the most of their innovations by using non-patent methods in a significant way, such as exploitation first. So much of the history of computer and computer operators has continued with the state of weak intellectual property rights. And industries and technologies differ greatly in their interactions with science.

Conclusion

Technology is affecting economic development both positively and negatively. It is helping in the huge production of products in the market and interacting with international customers. The technology has developed the communication with the international business which is making the business flourish all over the world with success. It is also making the business efficient and effective with new mechanisms that are introduced through the advancement of technology. The negative thing is due to the introduction of mechanisms there are fewer requirements for laborers which are resulting in unemployment in the country and there are workers who got displaced due to the installation of machinery to run the business efficiently and effectively. Technology usage should be done in control so that it doesn’t affect the worker’s life and their source of income. Otherwise, technology is helping a lot to develop the economy of the country and making the businesses better. But remember technology is stopping us from doing every physical work which is unnecessary so we need to take the help of technology where it’s needed as we shouldn’t misuse the presence and availability of technologies. The increasing exposition of the country’s economy due to global fluctuations and not enough security causes negativity in the economy. The countries that produce technologies for development bring economic superiority to other countries. Education can make a great contribution to the development of the economy by giving training to the people and helping them to get adapted to the new conditions of development. The technology eliminates jobs and stops recruiting employees but on the other hand, they also create opportunities and teach them other tasks that are required for the organization. The introduction of e-commerce has also changed the dimensions of commerce in the modern economy and its development due to the advancement of technologies. There is another thing to keep in mind while going with the technology: don’t be blind and choose every technology that is coming in front, choose the one wisely keeping the economy and the technology available in the country. Don’t go with the flow and choose what other country is choosing. Maybe we don’t have what others have or we already have what others don’t have. The choice of technology is also very important before planning to implement one. We can’t afford technologies that will invest the whole country’s economy in it but we need to find technologies that are lower in cost and are useful to work and develop the economy of the country.

References

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