Humanity since the existence hasn’t adapted with life as it is. They needed to change or add many things. Great people over the years have changed the universe entirely. Innovation is one of a wide range of techniques that they have used. Innovation can be a new idea or something creative added to an existed one to make something better. The innovation can simply defined as: a new idea or anything new. From the previous definition, innovation is either something totally new or a new improvement that can be added to enhance a certain product, service ..etc. It has been applied in every single field in our life. Innovation in the economic field will be discussed.
Innovation & Economic life
Nowadays, capital accumulation is not the main driver of the economic growth ,which is based on knowledge, but innovation. Let’s take US as an example. Most of substantial changes in the US economy have occurred not because of capital accumulation more than occurred because innovation. Efficiency in products and adaptation is the main cause of economic growth. Unlike neoclassical economics which focus on how societies can produce valuable goods using scarce resources and distribute these goods among different people, innovation economy focuses mostly on how societies can expand wealth by creating new forms of production, products and business models. Innovation economy focused on stimulate economic actors from the individual level to higher levels (organization). Additionally, it stimulated economist to shift for broader levels (cities & industries) to make economic more productive.
How Is The Innovation Economy Changing Our World?
By focusing on creating new business models, and new forms of production rather than focusing on developing and distributing different goods by using scarce sources, innovation economy is changing our life! Innovation economy started with technology. Individuals and firms were able to create products and ser
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References: Robles, D. (2009). A definition for innovation economics. Retrieved from http://www.ingenesist.com/a-definition-for-innovation-economics/ Philmkinney. (n.d.). Understanding the innovation economy and its impact on our world. Retrieved from https://philmckinney.com/understanding-innovation-economy-impact-world/
The impact of technology on economy
As technology is a wide term, understanding the meaning may differ from one person to another. Briefly, we can define technology as: processes and products that make our life more simple. It’s a scientific application which used to solve our daily life’s problems through a systematic style which is using created tools to produce materials and products through systematic processes and actions. Technology has been applied at every single side in our life. At work, communication, transports, learning and much more, we use technology.
The impact of technology on economy
Economy is one of a wide range of fields that have been affected to a large extent by technology. The impacts of technology on economy are at all levels. First of all, the most important impact is higher-level productivity which is represented at qualitative and quantitative increase. More products with less cost is an example of quantitative increase. Qualitative increase can be found in places such hospital where electronic monitoring equipment is maintaining regardless its cost. The second great impact is need to encourage research and development. Governments in the developing countries should encourage researchers and institutions as to help these countries to be independent. To achieve that, development and research should be favored regarding technology and science. More upgraded jobs is another significant impact. It’s a duty on businessman to give the job opportunity in priority basis to those who acquaint themselves with new technology. Earlier, the jobs could be handled by unskilled workers, but nowadays, same jobs requires more competent workers. Additionally, the need for highly professionalized personnel is another impact of Tech on economy. The employee tend to be as professional as the jobs because there must be highly skilled workers on organization’s payroll. These employees will need ruminations rather than other workers such as just treatment and job security that’s why motivation of these jobs is a difficult task. Furthermore, the need for bio professional and multi professional managers emerged. Administrator is required to be qualified in management education. In chosen fields of specialization, businessman should have high proficiency. Another impact of technological development is government’s increased regulations on business. Government has the power to ban the harmful products which causes strong opposition from those who fear that technology is a big threat and it is always harmful but they must get to know that it can be corrective. Beside all these impacts, technology has greater and greater impacts on the economic life.
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Ramey, K. (2013). What is technology _ meaning of technology and its use. Retrieved from https://www.useoftechnology.com/what-is-technology/
Suman, S. (n.d.). Impacts of technology on society, economy and plant. Retrieved from http://www.economicsdiscussion.net/technology/impacts-of-technology-on-society-economy-and-plants/13163