Technology is something that almost in today's life we cannot resist without. Till now we should accept the truth that technological innovation, overall human well-being and economic growth are interconnected.
Technological innovation comes with a price however this creating some jobs while creating the others. Technological changes are the part of the economic process.
The competition and a drive to find a better for more efficient way to produce goods and to provide services that leads business to take benefit of every new technology.
Technology has become ubiquitous. Technological innovation comes with the price however destroying some jobs while creating others. According to the classical economics theory the accumulation of physical capital is responsible for increasing human productivity.
Higher the technological refinement means high efficient production of goods and services. Eventually this will lead to higher growth in an economy. But there are advantages and disadvantages of the technological improvements.
Every industry has been impacted with the technology. But overall we can see at the trends like cloud computing, social media, data analytics and how these are changing on, how we live as well as how we work.
Global economy with the development in the technology effects in creating immense transformation in different ways such as trade goods development of new products and processes, companies, Nations organized production, advancement in the manufacturing technology.
Positive Aspect of Technological Changes:
Being diffused across countries: Technology can be transferred to country around the world. Diffusion of a technology can increase the trade economy due to the international competition technology can split by multinational corporation.
Affects Education: Technological Revolution opens opportunities for better jobs and workers must be retained and educated to take advantage of the same. Education must be less but the rote and more focus of creative thinkers.
Negative Aspects of Technological Changes:
Most specialized innovators: Creation of Idea might be harder to find due to the amount of existing knowledge and innovations. Innovators need more time to research and less they become more specialized.
Technology list directly related to the productivity of growth: The innovations discovered between 1933 to 1973 are all about increasing the productivity such as the mobile phones, radar, jet engines etc.
But all the innovations invented between 1973 to 2013 are mainly in the field of communication and lifestyle such as social media, internet and smartphone.
How Globalization Can Help in Spreading Knowledge and Technology around the Globe:
The sharing of technology assisted to boost innovation and productivity in these emerging markets, even in this current period of week Global productivity growth. The global economy brings a key advantage in spreading the technology around the globe.
It stimulates the spread of knowledge and technology as well as help in spreading growth potential across the countries. The relationship between in several countries among themselves is not this enough.
The absorption of the foreign knowledge and the capacity to build which require scientific and engineering know how. Government plays an important role in issuing the technological advancement at the national level.
Investing in education, domestic research and development and human capital can be the prominent to build the capacity to engage and efficiently utilize the foreign knowledge in building up the technology and to preserve the ability of the innovators to recover the cost while this knowledge supports the growth globally.
Technological progress is the key components for the betterment in standard of living and in income although the new technologies and knowledge do not developed everywhere at the same time.
However the course of action the technology is growing across the countries can be the central of how the Global growth is generated and how it is shared across the countries.
In the world of globalization that boosts the technological development in different ways such as easier to access to the foreign knowledge and innovations, enhances the international competition which results in rise of emerging market firms.
Eventually this leads to strengthening the firm's incentives to innovative and lastly adopting the foreign technologies. One of these studies shows that during the year 2004 - 2014 the flow of knowledge and technology in the emerging market economy helped to boost the domestic productivity.
There was an increase in the productivity growth by about 0.7 % per year. The recent boom in the technological innovation has changed the lifestyle of the people and the economy globally. While the technology has many positive aspects but there are some negative as well.
United States acts as a leader in developing emergent technology but facing and double threat of use budget and trade deficit along with this industrialization of traditional economic sectors.
Anonymous success in commercializing the upcoming technologies which has been demonstrated by Japan as it has an economy excessively dependent on exports.
Western Europe, Japan and North America are the spearheaded of the globalization of technology. Technological development has a great impact on developing countries because with the help of the technological innovations these countries can transform their raw material into value added commodities.
Eventually, accelerate their economic development without any diffusional effects. Here the developed countries can be responsible for the acceleration of the developing country economy.
We all know that economic growth is most popularly measured in terms of GDP that is gross domestic product. But GDP counts for the value of final goods and services traded within US for specific period of time as it does not include certain important aspects while it's very hard to measure the quality of life consideration.
GDP faces the issue for measuring the quality improvement which is the major form of innovation. GDP isn't everything when it comes to the growth in the economy. As the applications and the tools which we use today are much highly efficient and effective than the ones are grandparents used.
Policy maker should keep in mind to seek security for the economic growth and extend the innovative environment. When it comes to development in technologies with the Global economy.
There are several other things on the way suggest facing problem and future of technology regulation, right to pursue happiness earn living and innovate also fostering innovation a pathway to economic growth series.
Written by: Rakhi Sharma
Edited by: Gourav Chowdhury
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