Defining Technology

Technology is the collection of techniques, skills, methods and processes used in

the production of goods or services or in the accomplishment of objectives, such
as scientific investigation.

Technology can be theknowledge of techniques, processes, and the like, or it

can be embedded in machines which can be operated without detailed
knowledge of their workings.

Technology has many effects. It has helped

develop more
advanced economies (including today's global economy) and has allowed the rise
of a leisure class.
What are the differences between Science
and Technology
Technology & Economy of Nations

History of last 500 years of the world suggests that technological progress
is crucial for military strength of a nation and its survival as an entity.

Not only militarily, it is crucial for economic progress of nations as well.

Due to technological progress, USA, Western Europe & Japan etc are able
to ensure continued economic progress despite temporary ups & downs.
Technology & Economy of Nations
In Domestic market ,a nation and
its firms, having better and advanced
technology can enjoy following
advantages :
I. Improved and efficient functioning
of various organizations in the
nation.
II. Technological progress and infusion
brings major changes and
improvements in the overall
functioning of organizations leading
to transformations viz.
transformation in Banking Sector,
Telecom Sector etc.
III. Regular employment generation
and high standards of living.
IV. Lesser probability of occurance of
economic recession and lesser
adverse impact of economic
recession if it occurs.
V. Relative stability in national income.
VI. Growth of national economy.
In External markets, a nation and its
firms having better and advanced
technology can enjoy following
advantages :
I. Technological competitive advantage.
II. Boost to exports.
III. Forex earnings through exports
IV. Disposal of surplus to external
markets thus maintaining stability in
domestic prices.
V. Monopoly & high prices for hi-tech
products in the international markets.
VI. Earnings from external markets
provide additional funds for
supporting research & development
at home
VII. Globalisation of operations leading to
benefits of economies of scale of
mass production, and cost reduction
by procuring low cost resources /
inputs from anywhere in the world.
The Link to Economic Prosperity
Researchers have found a link between technology innovation and national
economic prosperity.

For example, a study of 120 nations between 1980 and 2006 undertaken by
Christine Qiang estimated that each 10 percentage point increase in broadband
penetration adds 1.3 percent to a high income countrys gross domestic product
and 1.21 percent for low to middle-income nations.
In addition, Taylor Reynolds has analyzed the role of communication
infrastructure investment in economic recoveries among OECD countries and
found that nearly all view technology development as crucial to their economic
stimulus packages.

He demonstrates that there is a strong connection between telecommunication

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

At a time of slowed growth and continued volatility, many countries are looking
for policies that will stimulate growth and create new jobs.

Information communications technology (ICT) is not only one of the fastest

growing industries directly creating millions of jobs but it is also an important
enabler of innovation and development.

The number of mobile subscriptions (6.8 billion) is approaching global population

figures, with 40% of people in the world already online. In this new environment,
the competitiveness of economies depends on their ability to leverage new
technologies.
Five ways technology can help the economy
prosper
Here are the five common economic effects of Technology.
1. Direct job creation
The ICT sector is, and is expected to remain, one of the largest employers. In the US alone,
computer and information technology jobs are expected to grow by 22% up to 2020, creating
758,800 new jobs. In Australia, building and running the new super-fast National Broadband
Network will support 25,000 jobs annually. Naturally, the growth in different segments is
uneven. In the US, for each job in the high-tech industry, five additional jobs, on average, are
created in other sectors. In 2013, the global tech market will grow by 8%, creating jobs,
salaries and a widening range of services and products.
2. Contribution to GDP growth
Findings from various countries confirm the positive effect of ICT on growth. For example, a
10% increase in broadband penetration is associated with a 1.4% increase in GDP growth in
emerging markets. In China, this number can reach 2.5%. The doubling of mobile data use
caused by the increase in 3G connections boosts GDP per capita growth rate by 0.5% globally.
The Internet accounts for 3.4% of overall GDP in some economies
3. Emergence of new services and industries
Numerous public services have become available online and through mobile phones. The
transition to cloud computing is one of the key trends for modernization. The government
of Moldova is one of the first countries in Eastern Europe and Central Asia to shift its
government IT infrastructure into the cloud and launch mobile and e-services for citizens and
businesses.
Five ways technology can help the economy
prosper
4. Workforce transformation
New micro work platforms, developed by companies like oDesk, Amazon
and Samasource, help to divide tasks into small components that can then be
outsourced to contract workers.
The contractors are often based in emerging economies. Micro work
platforms allow entrepreneurs to significantly cut costs and get access to
qualified workers. In 2012, oDesk alone had over 3 million registered
contractors who performed 1.5 million tasks. This trend had spillover effects
on other industries, such as online payment systems. ICT has also contributed
to the rise of entrepreneurship, making it much easier for self-starters to
access best practices, legal and regulatory information, marketing and
investment resources.

5. Business innovation
In OECD countries, more than 95% of businesses have an online presence.
The Internet provides them with new ways of reaching out to customers and
competing for market share. Over the past few years, social media has
established itself as a powerful marketing tool. ICT tools employed within
companies help to streamline business processes and improve efficiency. The
unprecedented explosion of connected devices throughout the world has
created new ways for businesses to serve their customers.
The Global Technology Map
 Some Technological Indicators for Selected Countries
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
Technology has been a major factor of economic expansion throughout
mankind's recorded history, since the invention of the wheel. However, it was
after the Industrial Revolution that extensive use of new technology revealed
the boost machinery can give to an economy's output.
Furthermore, relatively recent experience (of the last century) has also
revealed certain drawbacks applied science can have for capital circulation
and people's economic prosperity.

Technology Increasing Productivity:-

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
Reaching New Markets:-
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.

Reliance on Technology:-
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

Loss of Jobs
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