Technological Improvements for Economic Growth

TechnologicalImprovements for Economic Growth

TechnologicalImprovements for Economic Growth

Technologicaladvances variance has continued to drive economic productivity to aremarkable fit, which underlines the importance of technologicalfocus as an agent of primary change. Howells (2005) observed thatinnovative advances in technology can either be increments or leaps,although the bigger technological advances appear to assume thelimelight. According to study, there is a link that connectstechnology innovation and economic prosperity. In a study of 100nations for example, conducted between 1990 and 2005, estimated thatfor every 10% point increase, there was an added 1.3% broadbandpenetration to the GDP of high income country to 1.21% broadbandpenetration GDP of middle to low income nations.

Businessand entrepreneurship drives a country’s economic growth. When itcomes to technological advancement, Håkansson &amp Waluszewski(2007) noted that the world’s developed countries contribute over38% of GDP from business, infrastructure, and entrepreneurship. Forsmall business and entrepreneurship to improve, ICT infrastructuredevelopment and wireless technology is very important. For instance,many countries in sub-Saharan Africa have all roads paved at anapproximated 29%, with barely a quarter of the all populationaccessing electricity (Davidson, 2012). In America, improvement intechnology has come at a cost, with millions of the workers withmachines. Machines accelerated technology level, which also ensurednumerous people in the United States during the end of Depression andnow become technological savvy.

TheHarrod-Domar growth model talks about economic growth based ongradual technological growth, and why markets of developed nationsare likely to fail in ensuring full employment of its citizen. Thismodel implies that economic growth is dependent on the capital andquality of labor, that more investment in a country results incapital accumulation, and eventually generates economic growth(Murty, 2002). For a country like the United States in the 20thCentury, this growth model carried the implication of the countrythen, which was less developed economically (Murty, 2002). Thecountry full embraced technology toward the end of the 20thCentury, which oversaw many people lose their jobs to machines, butwith low physical capital. The economic growth model has theimplication that economic growth of a country is dependent onpolicies put in place, by increase in savings, and applying suchpolicies in a more efficient ways through advancement in technology.According to Davidson (2012), the growth model can conclude that acountry’s economy do find unnatural stable growth rates and fullemployment of its citizens.

Basedthe United States problem of less manufacturing jobs due to lowerlevel of manufacturing, and putting into consideration Apple’snumber of employers being the second in an innovative companyglobally, what is the likelihood that that everyone will benefit frominnovative technology? Everyone is unlikely to benefit frominnovation. Håkansson &amp Waluszewski (2007) observed thatinnovation have seen majority of companies in developed countriesembrace new innovative products, which has become the main source ofemployment dynamics. Not everyone is benefits from innovation sinceits contribution plays a role particularly in the destruction andcreation of jobs simultaneously.

Creativedestruction is defined as the process innovation and incessantproduct, whereby new innovation product unit replaces the outdatedone (Howells, 2005). To solve the problem about the comparisonbetween Apple’s number of employees and that of Taiwan-basedCompany Foxconn, the solution could be through innovation, wherebyspecificity is emphasized in terms of the products innovated andproduced. When they are specificity, there will be a line to separatethe two firms’ products, employees, and size of their revenue.

References

Håkansson,H., &amp Waluszewski, A. (2007). Knowledgeand innovation in business and industry: The importance of usingothers.London: Routledge.

Howells,J. (2005). Themanagement of innovation and technology: The shaping of technologyand institutions of the market economy.London: SAGE.

Davidson,A. (2012) Making it in America. The Atlantic Magazine, Business.United States. Retrieved inhttp://www.theatlantic.com/magazine/archive/2012/01/making-it-in-america/8844/1/?single_page=true

Murty,S. (2002). Technologyand employment.Jaipur: RBSA Publishers.