Technology and Economic Development - Assignment Example

Name: Tutor: Subject: Date: Q1 Significance of observation made The OECD economies are more dependent on the production, distribution and the use of knowledge than ever before. From the case study, it is clear that the technology is the solution of long term problems especially regarding production, distribution. While, on the other hand, economics rely on production and distribution, it is important to note that all the activities that orient towards economic growth should integrate the use of technology in their operations towards achieving those strategies. Take a look at the economic development that is geared towards embracing technology, you find that there has been the replacement of the old systems of production and the use of information technology has taken over such that there are high technologically advanced output and the level of employment, in terms of the use of computers in industries and aerospace. Economic development is more inclined towards knowledge based such that there is more shift towards developing technologically as per the case study where the estimated growth of GDP is knowledge-based. There is growth of investments that are geared towards high technology whereby the use of computers and other technologically advanced equipments result of rapid growth. Due to the rising rate on the use of technology, there has been the same rising rates on the search of knowledge on handling technology, for example, the research and development have been extended, and education has been advanced, training of the labor force on the use technology so that they will be updated. When it comes to productivity, the use of technology has proven to improve the level of production such that more organizations are embracing the use of technology so as to achieve substantial goals. From the case study, OECD suggests that there is a positive relationship economic development and technology such that the use of technology in production and distribution results into more economic development. Take a look at job creation whereby the use of technology has created more job opportunities which have also added an impact to productivity. When it comes to knowledge and productivity, it is evident from the case study that there is a relationship between knowledge and production together with the use of technology. This has been proved by the fact that innovation is needed in the production and this is associated with knowledge. In many organizations, there is the use of innovation to enhance production and distribution and thus advanced economic development. Q2. Causes of economic growth in potential output in the long term According to the case study, the theoretical review of economic development has been associated with the use of technology. Productivity and knowledge are the main sources of economic growth. Technology is, therefore, crucial for economic growth whereby there is a wave of development associated with the use of advanced production inputs. Let’s focus on the trade and international competitiveness, we find that there is more of a technological aspect that has contributed towards competition and has extended to international trade. Countries that engage trading internationally use technology for their production and distribution of their goods and services, when you analyze the economic growth of these countries, there is an improved technology so that they can maintain their image in international level. They have invested in enhancing their local industries through an increase in labor productivity as a result of technology. This has enabled them to attain their economic development and, therefore, expand their development internationally. Technology leads to changes in employment patterns such that countries are inclined towards employing people who have technical skills and competence, as a result of this, innovation will strike in many organizations and, therefore, integration of technology and innovation leads to the attainment of economic growth. Economic growth is also associated with the direction of investment such that when a country changes its direction towards embracing technology with the purpose of investing in technologically advanced projects. This has resulted to reorganization of business and other technologically related causes. Government involvement in economic growth is also another aspect that has resulted to advanced production and distribution. The government also contributes towards economic growth by providing an enabling environment for enterprise development. Increased capital by investing in infrastructure is a great contribution towards the expansion of industries. This is an indication of economic growth whereby a country will expand its production units by creating employment and adding value to products through the use of technology. It is obvious that one aspect that indicates economic development is poverty reduction, stable GDP and improved infrastructure. The success enterprises have also been associated with the use of technology and knowledge, such that there is a high rate of successful ventures into businesses which also contribute to economic growth since it will enable the country to earn an income through taxing these enterprises. Q3. Area in an economy where jobs are growing more rapidly Economic growth triggers the emergence of many projects that orient towards achieving stability, when there is a use of technology in economic growth, it creates more job opportunities. Let’s focus on expansion of industries as a result of economic development, we find that more employment will be needed to provide labour for the industrial production. There is more job creation in the industrial sector where they need people to work in the production process, and in this case the embrace of technology result to demand competent employees who should control the technology. Let’s take a look at an industry that has many departments and the use of information and communication technology which requires experts. In the process of economic growth, many activities are undertaken to ensure that economic stability has been attained. Enterprises are developed as per the case study, we can deduce that economic development stimulates emergence of enterprises that have an objective of generating money, and they will, therefore, create employment. Take, for example, the use of technology in design and installation, you find that this field creates employment for people to work on the designs and constructions. This is one of the aspects that result of employment in the form of developing the economy. Implementation of projects also requires skilled and competent employees who are innovative and they will ensure the successful implementation process. From the history, technological advancement has resulted to more employment creation such that when you rate the level of employment from way back, we find that there has been a rise in employment levels compared to the past where employment was difficult due to the low rate of economic employment. It is due to the presence of technological innovations that has generated employment. Use of computerized machines in industries, use of information communication technology in organizations has created employments. Economic development is, therefore, a means of ensuring that the country has attained a stable GDP and, therefore, in this process, there are many activities undertaken to achieve economic stability. These activities involve; improving infrastructure, expansion of industries, reduction of poverty, use of technology, engaging in international commercial activities, maximum utilization of natural resources and attaining quality education. Therefore, from the case study, it is clear crystal that the economic development is the source of employment especially for industrial and development sector. This will in turn result to a stable economy where there are low rates of poverty and people have improved in their living standards. Q4. Reason for a decline in high-tech employment in rural areas From the case study, there is an explanation of the reason for the decline in high technology employment in rural areas. This has been proved by the fact that rural areas seem to lack so many facilities that are needed for full implementation of technology. There are challenges in rural areas that result to poor technological advancement. Example is the poor infrastructure which results in poor accessibility to rural areas, this has resulted to low development rates concerning economic growth because when there is no accessibility, the technological advancement will also remain inaccessible unlike the urban areas where technology is easily accessible because of the good infrastructure. The overall result of poor infrastructure, result to the low rate of high technology employment in rural areas due to inefficient technology advancement. Another reason for low employment in rural areas is the lack of knowledge; this comes as a fact that there is low accessibility to education in the rural especially higher levels of education where people learn on technology advancement. Embracing technology cannot succeed if there is no knowledge on how to use the technology, in rural areas, people are not up to date with education that will lead them to acquire new knowledge on technology. Therefore, there will be low levels of high tech employment because there is not enough skills and knowledge on how to use technology. In some cases, there is an experience of increased employment of high tech in the rural areas and this occurs through the expansion of small medium enterprises in the rural areas. Due to the plans for economic growth, there has been a slight increase in developing the rural areas by creating small enterprises. These enterprises have resulted in emergence of the needed labor to work in this enterprise. The result of small medium enterprises is the emergence of social amenities that will attract technology in some rural areas, these amenities come in the form of banks, hospitals, hotels and restaurants and shopping malls. Therefore, there has been an increase in the high tech employment levels in the urban areas because there is faster development in terms of infrastructure, education, and the rising population of people who need to be technologically advanced by changing their living standards. All these changes in technology are brought about by the need to attain a stable economic environment and, therefore, embracing it will result to changes in the living standards. Q5. The contribution of the government and the business sector towards improving the knowledge From the case study, we can conclude that there is a positive relationship between technology and knowledge. We learn that due to technology advancement, there has been a shift by most businesses towards embracing technology and knowledge. There is no single organization that will rely on technology without the knowledge on how to use it. Therefore, in many organizations, before they adopt the use of technology, they first train their employees and equip them with the knowledge on how to handle technology equipment be it computers, machines and other electrical gadgets. Growth and expansion of business have, therefore, contributed to more knowledge. Aside from that, people are also seeking new ways of advancing their knowledge by embracing advanced education systems that equip them with up to date knowledge and skills. People seek knowledge so that when they are employed, they will be able to deliver satisfactory services in terms of labour required. In organizations, the processes of production and distribution require the use of competence and skills. With the faster rate of economic growth, there is also the fastest rate of knowledge growth because there is no way success towards economic stability can be attained without the use of knowledge. This, therefore, has resulted in people seeking more knowledge for the purpose of innovations and the ability to handle the competitive environment. The growth of markets requires intelligent people to deliver their knowledge on planning and implementing strategies that will keep businesses ahead of the competition by seeking more innovations in technology. This has brought about growth on the quality of knowledge and people and more companies and big organizations depend on the quality of knowledge. This enables them to seek other means of getting more profits. The government has also contributed to the growth of knowledge in the process of ensuring economic growth. This is evident through the fact that there is an emergence of good quality education system where people can go and add knowledge for the purpose of benefiting the economy. In the developed countries, for example, there is more embrace on education sector, such that people nurture their talents and use their talents for development purposes. Developed countries have invested in more technology because they are economically stable, and, therefore, they use technology to advance in their lifestyles. New technology, especially for the developing countries have triggered a search for knowledge, this is because the governance has to develop strategies for achieving economic growth while improving on the quality of knowledge. There is promotion of innovations which require more consideration on the research and development. Therefore, the governments will invest in research and development by using technology to be able to come up with innovative ways on improving the rate of economic development. Research and development, on the other hand, requires networking of knowledge from different sectors, this has contributed to an extensive search for knowledge by developing institutions that offer education in different fields. The government and businesses have, therefore, developed strategies for improving the network of knowledge. This has been achieved through allowing international trade, which has created a link of knowledge networks through idea generation and sharing by interacting with people from different diversities. Developing local industries by the government is also a way of enhancing network of knowledge because it has contributed to the need of qualified employees with technical skills. Another contribution towards network of knowledge by the businesses is the need for manager’s work in the organizations by ensuring there is a smooth flow of activities. These managers are responsible for implementation of technology and ensuring that all the management aspects are in line with the use of technologically advanced equipments. When businesses demand such qualities from their employees, it calls for expansion of knowledge from job seekers and, therefore, contributing to a network of knowledge. Conclusion From the analysis of the case study, it is crystal clear that there is a relationship between economic growth and the change in technology. This is seen by the fact that the new technology has triggered changes in many aspects that contribute to the growth of the economy. We can, therefore, conclude that economic growth is a step towards achieving the success of implementing programs that enable a country to develop globally, however, with the use of technology, there is a faster rate of economic growth. Reference Fransman, M. (1986). Technology and economic development. Social science. Malecki, E. (1997). Technology and economic development: the dynamics of local, regional and national competitiveness. Business and economics. Mowery, D. (1991). Technology and the pursuit of Economic Growth. Cambridge university press. Nelson, R. (2005). Technology, Institutions, and Economic Growth. Harvard University Press. Rahman, A. (1974). Science, Technology, and economic development. National publishing house. Read More