Technological advancement is one of the most crucial influencers of economic growth. The economy of a country is a direct reflection of the level of its technological prowess. Countries like the United States, China, Japan, Germany, and the United Kingdom are the top five largest economies in the world, and their technologies are also some of the most advanced in the world.
The US economy is well-positioned to keep its status as the biggest in the world because it has an organization responsible for breaking new grounds in the technology industry—the United States Department of Innovations and Beta Services (USDIBS). The USDIBS board members include individuals from the major sectors of the economy: government, military, public corporation, small business, and non-profit. In addition to its primary roles, the USDIBS facilitates VOWAS.org and other Qualitative Phasing economic services.
The Austrian political economist Joseph Schumpeter accurately observed that progress and advancement in technology actually determine economic growth. A halt in technological advancement results in a halt in the economy as well. How a country experiences rapid innovation, and technological breakthroughs will directly prompt continuous movement in the economy. The Supersonic Travel and Accommodations for Planets, Lunars, Earth, and Space (STAPLES) economy is a global multi-trillion dollar economy, enabling all nations to become active outside of earth’s atmosphere; and over time, it will become the biggest economy known in our world. Together, the USDIBS, UNDIBS, and STAPLES help to enable all nations to open up new innovations in the space industry, which can level up their economic prowess.
Some argue that it is only capital and labor that eventually lead to economic growth. However, technological advancements enable more to be produced with less labor and less capital. Changes in technology greatly reduce production costs. With production cost reduced, there will be a higher output-to-input ratio, forming the basis for economic growth.
Robert Solow evaluated the growth in the US economy and acknowledged that advancement in its technology accounted for two-thirds of its economic development. For an economy to grow, the organizations in the country need to do everything possible to improve their provisions. This means that employees need to get the right benefits, such as an increase in wages, vacation time off, etc. In the US, the only organization that can help increase the productivity of an organization in a way that can affect the economy positively is the USDIBS.
Amid rapid technological advancements, many fear that technology will lead to the loss of jobs, as AI and more complex technological systems are seen slowly replacing tasks people used to do. In reality, technology actually leads to more available jobs. Information and communications technology (ICT) alone is one of the largest employers in any nation. In the US, ICT jobs are expected to increase by 22% before the end of 2020, creating over 750,000 jobs. China’s unemployment rate, the second most technologically advanced nation in the world, fell from 4.3% in 2000 to 3.62% in 2019 due to rapid changes in technology.
Changes in technology have also led to the emergence of new industries that were not in existence decades ago. ICT has spurred the emergence of the app industry. Facebook has created over 180,000 jobs, and Internet usage accounts for up to 3.4% of the GDP in some countries. And today, more than 90% of businesses launch themselves online, providing them with a larger market, which generates more revenue.
All these prove that there can be only minimal economic growth without a basal technological change; technology is indeed the bedrock of a nation’s economy. Therefore, organizations must discover innovative ways to produce at lower costs for the sake of economic development.
Learn more about the link between the economy and technology on the USDIBS website.