The Impact of Technology on the Economy

The economy of a state or country can be defined as the resources available to it and how well and carefully they are managed and utilized. We say that technology has had an impact on everything and that is very true. The economy too has been affected directly by technology and even if the impact wasn’t direct, there is so much technology has changed completely that its impact on the economy cannot be denied for any reason or by anyone. Studies show that issuance of patents directly expands the economy by pushing industries to produce better and more.

 

Increase in Productivity

Perhaps the most significant impact of technology on the economy has been by enabling a both, qualitative and quantitative increase in productivity. It has not only enabled to produce more but produces better. Production at huge scales on significantly lower costs than in the past is only possible due to technology. New equipment, machinery, and technology have increased the quality of products being manufactured and services being delivered everywhere.

 

Research and Development

The possibilities and unlocked potential technology have encouraged governments around the world to encourage research and development instead of buying and importing technology. Educational institutions and universities today encourage students to perform research and contribute to technological advancement. Good ideas and projects receive funding from governments and other interested entities. A culture of improvement and performance driven innovation has been created due to technology and how it has spurted R&D everywhere. The constant modernization of equipment and technology is a result of this.

 

GDP Growth

Research data from various countries around the world proves that the growth of ICT has a positive effect on growth. Higher broadband penetration, higher mobile Internet and mobile devices usage, and even higher adoption of technology in every aspect of our lives have proven to boost GDP per capita growth rate.

 

Better and Upgraded Jobs

Jobs aren’t as simple as they once used to be. The simplest jobs in every industry are being taken over by machines. Individuals that haven’t kept up with technological advancement to keep themselves useful are finding themselves without jobs. Although this is a problem currently, it is encouraging others to improve their skills and retrain themselves over the period over their work life to keep up with technology’s pace and remain relevant in today’s fast-paced world. The quality and skill requirement of jobs has taken a bump and people are realizing that their university learning will only be useful to them for a few years.  A culture of continuous learning and development is gaining adoption as a result which is a good thing.

 

Direct Job Creation

Technology has directly created a huge number of jobs and openings. Where technological advancement has permanently closed many jobs, it has created many more in comparison in their place. The ICT sector remains to be the largest employer today and the number of job offerings in it will only increase in the future at an even faster rate.

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