Technology and Its Impact to the Economy | IWCMC

  • Technology and Its Impact to the Economy

    June 25, 2021 By Evette Normand 0 comments

    Nowadays, it seems like every day, an invention or idea is revealed. There are many influential devices that help people in their daily lives. It also has a great impact on our economy. Technological change is part of the economic process. The competition and the drive to find better and more efficient ways to produce goods and provide services. This leads businesses to take advantage of any technology that is beneficial for them. Technological innovation comes with a price, destroying some jobs while creating others. According to the classical economic theory, the accumulation of physical capital is responsible for increasing human productivity. More technological improvement means the more efficient production of goods and services and there is a higher growth in the economy.

    Positive aspect of technological change:

    1. Being diffused across countries. Technology can be transferred to different countries around the world. It increases the trade economy due to the International competition.
    2. Technology affects education. Technological revolutions opportunities for better jobs. Workers must be retrained and re-educated to take advantage of them. Education must be focused more on creative thinking.

    Negative aspect of technological change:

    1. More specialized innovator. Creation of ideas may be harder to find because of the amount of existing knowledge and innovations. Innovators need more time to research unless they become more specialized.

     

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