Access to Technology and Economic Development - Literature review Example

ss to Тесhnоlоgy and Есоnоmiс Dеvеlорmеnt Name Institution Ассеss to Тесhnоlоgy and Есоnоmiс Dеvеlорmеnt There are various benefits that are associated with technological advancement in relation to economic development. In businesses, technology enhances the overall quality and performance of products, making them more desirable to consumers. Organizations also use technology to automate processes. Technology devices and infrastructure also improve accuracy and efficiency in various processes and provide greater access to global communication. Access to technology or development of networking infrastructure is quite a significant aspect when it comes to economic development of any given country. In Australia for example, there has been heated debate with regard to the issue of developing the nation’s internet infrastructure as well as the system that should be put in place as a way of maintain the industrial development and economic growth of the country (Amichai-Hamburger & Hayat, 2011). This piece of work will give an in-depth analysis of the issue of technology and economic development. Much emphasis will be given to Australia but other parts of the world will also be highlighted. The statement, “Internet and world-wide-web technologies are a key driver for economic growth and prosperity” will be the centre of the discussion. The integration of online commerce into business models is an issue that is attributed to numerous benefits. Electronic commerce has been embraced by many enterprises in Australia and other parts of the world. Integration of web technologies with business models is an aspect that most businesses have recognized and implemented as a way of enhancing their efficiency, effectiveness as well as productivity in their endeavours. Businesses have made the objective of building their firms into successful e-businesses a priority. This simply entails empowering the firm with capabilities such as enhanced information sharing, intelligent decision making, global networking, agility when it comes to responding to the market forces and finally streamlining business processes. The adoption of the Web has allowed enterprises to extend beyond the traditional business functions and adopt new features such as online commerce. The Web facilitates processes such as marketing, interaction with customers as well as product distribution among others. To appropriately implement and make use of online commerce systems, there is need for enterprises to evaluate significant amount of information from the business environments in activities such as environmental scanning (Strauss & Raymond, 2016). It helps in operational decisions and strategic management. Social media is an aspect that cannot be underrated when it comes to the issue of networking technology and its impact on economic development. Social media has been used for various purposes such as advertising, analysis of consumer behaviour and marketing among others. In turn, this enhances business performance and increase the productivity of a country. The effects of the internet on the economy touch on from a wide range of areas; from corruption to democratic freedom aspects and shadow economy, from enhanced technological productivity to heightened foreign direct investment and from inflation to political economy issues. The penetration of the internet and social media networks is part of the information and communication technology revolution. Different governments, in developed and developing nations have realized the considerable growth potential of the internet and other technology infrastructure to their economies (Salahuddin & Alam, 2015). As such, they have developed policies that promote the use of the technologies to reap from the benefits. South Africa is a good example of where internet use has been seen to enhance economic development. Internet usage has been increasing day by day to the county’s economic advantage. It has the highest penetration in Africa, an aspect that offers a favourable platform for extensive internet and broadband usage. This has led to improved international connectivity and reduced costs. The use of the internet allows the production and dissemination of information and ideas in markets, which in turn improves processes and eventually uplift economic and financial development. It accelerates economic growth by promoting development and adoption of innovation processes. It as well facilitate macroeconomic growth by accelerating the distribution of information and ideas and fostering competition for and production of new business models, goods and processes (Korres, 2012). The rise of subscription-based services for delivering content is also an issue of concern in technology development. Czernich, Falck, Kretschmer and Woessmann (2011) assert that online subscription and recurring billing models are considered as essential opportunities that allow traders to earn predictable and regular revenue and at the same time reinforce relationships with customers. As businesses and consumers seek for more flexible and convenient means of accessing and pricing desired services, there has been the emergence of new models of ownership through aspects such as subscription, rental and sharing businesses. This is has led to major transformation in different sectors of the economy. Korres (2012) asserts that some of the factors that have contributed to growth and development in Australia are internet usage, trade openness and financial development. Internet usage has been said to spur economic growth in the long-run and it is thus a positive move. It also promotes financial development and generally transforms the Australian economy at a rapid rate. Australia was in a position to survive financial crisis with an enhanced performance. Rapid expansion of information technology usage is a major factor that led to the success in growth and productivity performance. This shows that the internet and general technological advancement are quite essential when it comes to economic development in any country. Access to technology is associated to national affluence and prosperity. This can be understood through the various benefits that technology brings to a nation. There is need for various parties such as the government, businesses and policy makers to identify and embrace opportunities that technology such as the internet can create. In addition, the risks to security and privacy associated with the internet should be effectively managed. To get maximum benefits from a network, there is need to nurture the growth and development of a strong and healthy internet ecosystem. The system should be in a position to improve infrastructure and access, put up a competitive environment that is beneficial to users, allows entrepreneurs and innovators to thrive and fosters human capital (Czernich, Falck, Kretschmer & Woessmann, 2011). A combination of these elements works towards maintaining the continued effect of networking on economic growth and development. Despite the fact that technological advancement is linked with a variety of advantages in different areas including economic development, it also has some drawbacks. The impact of content-sharing capabilities that allow piracy for instance the unlawful download of software, music and television programs is an example. According to Ferrer (2011), internet piracy has had a negative impact on the Australian economy. A study commissioned by the Australian Content Industry Group showed that in 2010, the Australian economy lost approximately $900 million as a result of internet piracy. About 8, 300 jobs were also lost because of internet piracy. It was also found out that 4.7 million Australian internet users accessed online content unlawfully. According to the report, the trend was expected to worsen as years progress, an aspect that is worrying and needs some intervention. Metcalfe’s law is worth discussing in this paper. The law dictates that the value of a telecommunications network is commensurate to the square of the number of the users connected in a system. The law could mean that the community value of a network expands as the square of the number of its users grow. This can be understood like the rapid growth of the internet. To a large extent, the value of a network increase as more things are connected. A good example is that of fax machines. One fax machine is not useful. However, the value of each fax machine tends to increase as machines are added to the network. This is more so since the number of individuals one can communicate with or send and receive documents increases. This is usually the same case with social networks. The larger the number of users with the service, the more valuable the service becomes to those involved and the community at large (Madureira, Hartog, Bouwman & Baken, 2013). Nonetheless, this could not always be true since the law has the limitation of inability to quantify the value of a network. From the above discussion, it is evident that technological growth and advancement play a great role in economic development in Australia and other parts of the world. It is clear that Internet and world-wide-web technologies are a key driver for economic growth and prosperity. Enhanced communication and connectivity is a positive aspect that allows for success in various sectors of the economy such as trade and investment. Increased use of the internet facilitate macroeconomic growth by accelerating the distribution of information and ideas and fostering competition for and production of new business models, goods and processes. It also accelerates economic growth by promoting development and adoption of innovation processes. For this reason, various governments in different countries have invested in the growth and development of technological infrastructure so as to reap maximum benefits from the same. It is also worth noting that there some negative effects of technology and internet use in particular such as piracy and illegal use of online content. Nonetheless, it seems that the benefits outweigh the drawbacks and thus, it advisable to maximize on the advantages while at the same time managing the disadvantages in an effective manner. References Amichai-Hamburger, Y., & Hayat, Z. (2011). The impact of the Internet on the social lives of users: A representative sample from 13 countries. Computers in Human Behaviour, 27(1), 585-589. Czernich, N., Falck, O., Kretschmer, T., & Woessmann, L. (2011). Broadband infrastructure and economic growth. The Economic Journal, 121(552), 505-532. Ferrer, E. (2011). Impact of internet piracy on the Australian economy. Australian Policy Online. Retrieved from http://apo.org.au/resource/impact-internet-piracy-australian-economy Korres, M. G. M. (2012). Technical change and economic growth: Inside the knowledge based economy. London: Ashgate Publishing, Ltd. Madureira, A., Hartog, F., Bouwman, H., & Baken, N. (2013). Empirical validation of Metcalfe’s law: How Internet usage patterns have changed over time. Information Economics and Policy, 25(4), 246-256. Salahuddin, M., & Alam, K. (2015). Internet usage, electricity consumption and economic growth in Australia: a time series evidence. Telematics and Informatics, 32(4), 862-878. Strauss, J. & Raymond, F.D. (2016). E-marketing. New York: Routledge. Read More

 

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