Technology and

Economic prosperity
Defining Technology

Technologyisthecollectionoftechniques,skills,methodsandprocessesused
intheproductionofgoodsorservicesorintheaccomplishmentofobjectives,
suchasscientificinvestigation.

Technologycanbetheknowledgeoftechniques,processes,andthelike,oritcan
beembeddedinmachineswhichcanbeoperatedwithoutdetailedknowledgeof
theirworkings.

Technologyhasmanyeffects.Ithashelpeddevelopmoreadvancedeconomies
(includingtoday'sglobaleconomy)andhasallowedtheriseofaleisureclass.
What are the differences between
Science and Technology
Technology & Economy of Nations

Historyoflast500yearsoftheworldsuggeststhattechnologicalprogress
iscrucialformilitarystrengthofanationanditssurvivalasanentity.

Notonlymilitarily,itiscrucialforeconomicprogressofnationsaswell.

Duetotechnologicalprogress,USA,WesternEurope&Japanetcareable
toensurecontinuedeconomicprogressdespitetemporaryups&downs.
Technology & Economy of Nations
InDomesticmarket,anationandits
firms,havingbetterandadvanced
technologycanenjoyfollowing
advantages:
I. Improvedandefficientfunctioningof
variousorganizationsinthenation.
II. Technologicalprogressandinfusion
bringsmajorchangesand
improvementsintheoverall
functioningoforganizationsleadingto
transformationsviz.transformationin
BankingSector,TelecomSectoretc.
III. Regularemploymentgenerationand
highstandardsofliving.
IV. Lesserprobabilityofoccuranceof
economicrecessionandlesseradverse
impactofeconomicrecessionifit
occurs.
V. Relativestabilityinnationalincome.
VI. Growthofnationaleconomy.
InExternalmarkets,anationandits
firmshavingbetterandadvanced
technologycanenjoyfollowing
advantages:
I. Technologicalcompetitiveadvantage.
II. Boosttoexports.
III. Forexearningsthroughexports
IV. Disposalofsurplustoexternalmarkets
thusmaintainingstabilityindomestic
prices.
V. Monopoly&highpricesforhi-tech
productsintheinternationalmarkets.
VI. Earningsfromexternalmarketsprovide
additionalfundsforsupporting
research&developmentathome
VII. Globalisationofoperationsleadingto
benefitsofeconomiesofscaleofmass
production,andcostreductionby
procuringlowcostresources/inputs
fromanywhereintheworld.
The Link to Economic Prosperity
Researchershavefoundalinkbetweentechnologyinnovationandnational
economicprosperity.

Forexample,astudyof120nationsbetween1980and2006undertakenby
ChristineQiangestimatedthateach10percentagepointincreaseinbroadband
penetrationadds1.3percenttoahighincomecountrysgrossdomesticproduct
and1.21percentforlowtomiddle-incomenations.
Inaddition,TaylorReynoldshasanalyzedtheroleofcommunication
infrastructureinvestmentineconomicrecoveriesamongOECDcountriesand
foundthatnearlyallviewtechnologydevelopmentascrucialtotheireconomic
stimuluspackages.

He demonstrates that there is a strong connection between

telecommunication investment and economic growth, especially
following recessions.
Thesekinds of investments help countries create jobs and lay the
groundwork for long-term economic development.
Five ways technology can help the
economy prosper

Atatimeofslowedgrowthandcontinuedvolatility,manycountriesarelooking
forpoliciesthatwillstimulategrowthandcreatenewjobs.

Informationcommunicationstechnology(ICT)isnotonlyoneofthefastest
growingindustriesdirectlycreatingmillionsofjobsbutitisalsoanimportant
enablerofinnovationanddevelopment.

Thenumberofmobilesubscriptions(6.8billion)is
approachingglobalpopulationfigures,with40%ofpeopleintheworldalready
online.Inthisnewenvironment,thecompetitivenessofeconomiesdependson
theirabilitytoleveragenewtechnologies.
Five ways technology can help the
economy prosper
HerearethefivecommoneconomiceffectsofTechnology.

1.Directjobcreation
TheICTsectoris,andisexpectedtoremain,oneofthelargestemployers.IntheUSalone,
computerandinformationtechnologyjobsareexpectedtogrowby22%upto2020,creating
758,800newjobs.InAustralia,buildingandrunningthenewsuper-fastNationalBroadband
Networkwillsupport25,000jobsannually.Naturally,thegrowthindifferentsegmentsis
uneven.IntheUS,foreachjobinthehigh-techindustry,fiveadditionaljobs,onaverage,are
createdinothersectors.In2013,theglobaltechmarketwillgrowby8%,creatingjobs,salaries
andawideningrangeofservicesandproducts.
2.ContributiontoGDPgrowth
FindingsfromvariouscountriesconfirmthepositiveeffectofICTongrowth.Forexample,a
10%increaseinbroadbandpenetrationisassociatedwitha1.4%increaseinGDPgrowthin
emergingmarkets.InChina,thisnumbercanreach2.5%.Thedoublingofmobiledatause
causedbytheincreasein3GconnectionsboostsGDPpercapitagrowthrateby0.5%globally.
TheInternetaccountsfor3.4%ofoverallGDPinsomeeconomies
3.Emergenceofnewservicesandindustries
Numerouspublicserviceshavebecomeavailableonlineandthroughmobilephones.The
transitiontocloudcomputingisoneofthekeytrendsformodernization.Thegovernmentof
MoldovaisoneofthefirstcountriesinEasternEuropeandCentralAsiatoshiftitsgovernment
ITinfrastructureintothecloudandlaunchmobileande-servicesforcitizensandbusinesses.
Five ways technology can help the
economy prosper
4.Workforcetransformation
Newmicroworkplatforms,developedbycompanieslikeoDesk,Amazonand
Samasource,helptodividetasksintosmallcomponentsthatcanthenbeoutsourcedto
contractworkers.
Thecontractorsareoftenbasedinemergingeconomies.Microworkplatformsallow
entrepreneurstosignificantlycutcostsandgetaccesstoqualifiedworkers.In2012,
oDeskalonehadover3millionregisteredcontractorswhoperformed1.5milliontasks.
Thistrendhadspillovereffectsonotherindustries,suchasonlinepaymentsystems.ICT
hasalsocontributedtotheriseofentrepreneurship,makingitmucheasierforself-
starterstoaccessbestpractices,legalandregulatoryinformation,marketingand
investmentresources.

5.Businessinnovation
InOECDcountries,morethan95%ofbusinesseshaveanonlinepresence.TheInternet
providesthemwithnewwaysofreachingouttocustomersandcompetingformarket
share.Overthepastfewyears,socialmediahasestablisheditselfasapowerful
marketingtool.ICTtoolsemployedwithincompanieshelptostreamlinebusiness
processesandimproveefficiency.Theunprecedentedexplosionofconnecteddevices
throughouttheworldhascreatednewwaysforbusinessestoservetheircustomers.
The Global Technology Map
 SomeTechnologicalIndicatorsforSelectedCountries
Country Total no. of Highimpact GDP, Investment Investment $ M/ PhDs
publications publications $T in R&D, R&D, $ B publiccation in
(2006)a, % (2003)c % GDPd E&Te
(change (change)b per
over 1997) year

USA 451 028 63% 10.9 2.68% 292.0 0.65 8000

(+ 18%) ( 4%)

China 78 671 0.99% 1.42 1.31% 18.6 0.24 9000

(+ 358%) (+125%)

South (+ 290%) 0.78% 0.61 2.64% 16.1 0.60

Korea (+178%)

India 26 963 0.54% 0.60 0.77% 4.6 0.17 700

(+ 60%) (+69%)

UK ~ 122 000 12.8% 1.79 1.89% 33.8 0.28

(+25%)

NB King NSR NSR

Advantages & Disadvantages of Technology on
Economy
Technologyhasbeenamajorfactorofeconomicexpansionthroughout
mankind'srecordedhistory,sincetheinventionofthewheel.However,itwas
aftertheIndustrialRevolutionthatextensiveuseofnewtechnologyrevealed
theboostmachinerycangivetoaneconomy'soutput.
Furthermore,relativelyrecentexperience(ofthelastcentury)hasalso
revealedcertaindrawbacksappliedsciencecanhaveforcapitalcirculation
andpeople'seconomicprosperity.

TechnologyIncreasingProductivity:-

Since the start of the Industrial Revolution in the 18th century, the
introduction of advanced machinery in factories has made it
possible to give human workers only the most delicate or crafty of
jobs and leave the rest to automated devices. For example, it's
machines that paint new cars, making this final step of the
production process much quicker. However, not only goods'
production benefits from new technology, but also services, such
as information technology, media companies and financial firms
rely on computers and networks (Internet) to send and retrieve
valuable information quickly.
Advantages & Disadvantages of
Technology on Economy
ReachingNewMarkets:-
An important aspect of a successful economy is its ability to sell its
excess production to other markets, in other words to export goods
and services. For example, according to data from the U.S. Census
Bureau, exports brought $193.9 billion to the economy in March 2014.
Technology in the form of new means of transportation (faster
freighters, cargo airplanes), as well as new methods of communication
(fax, Internet) has effectively shrank the world and made international
trade more accessible and efficient.

RelianceonTechnology:-
As technology has become a basic element of all modern enterprises,
production is affected greatly by flaws and malfunctions of machinery
and information systems. E-commerce businesses cannot function if
Internet connection is lost, while production of a factory is reduced
when a machine stops operating. In addition, as technological devices
become more advanced and complicated, only specialized
professionals, such as mechanics and programmers, have the ability to
fix a problem.
Advantages & Disadvantages of
Technology on Economy

LossofJobs
New technology has created a whole new field of jobs, which
includes mechanics, programmers, machine operators and other
relevant specialized professions. However, at the same time a
number of low- to middle-level jobs -- requiring no particular
specialization -- are lost, as machines replace the human capital.
For instance, modern machines can undertake routine tasks in
factories, making one or more salaried employees unnecessary.
Unemployment deprives people of money that they could spend in
the market, making their contribution to the economy tiny.
Conclusion

The importance of technology in the present world

can not be underestimated as it has dominated
almost all the fields of business and industry
including the service sector and one having no touch
with this technology would not be able to make any
progress in the century to come.

We can say that the importance of technology cannot

be denied in order to achieve economic prosperity