How Technological Change Impact Upon Economic Growth
How technological change impact upon economic growth
There have been dramatic changes in global economics in the last two decades through the flow of trade, foreign investment and of course technology, with a major rise in the manufacture and spread of information and communications technologies (ICT). For the course of this paper, ICT, a general purpose technology will be used to include in broad terms, computers – software and hardware, telecommunications, satellite communications, email and internet. Development in ICT has been a major contributory factor to the growth of productivity and economy in the United States (US) and the European Union (EU). Productivity is linked with both the ICT producing (manufacturers) and using (service) sectors. The rates to which countries adopt, use and invest in ICT differ. Some were quick to exploit the many benefits of using ICT while others saw it as a passing fad and so were slow to react to it. D’ Costa, A (2006) writes that a ‘new economy’ emerges when sectoral developments and structural changes are combined with ICT and services. This leads to a knowledge-based information society, which is relative to competitiveness and growth. The end of the 20th century sees countries in the European Union and the United States leading the ‘new economy’ The OECD has reported that there will be continuous and sustained long term growth in the ICT sector because developments of new services and products will drive demand for them higher.
This paper will examine the effects of CT and technological changes on the economic growth of the European Union and the United States.
An Overview of the ICT industry in Europe and the United State
Information and Communication Technologies are now means for firms to achieve competitive advantage over their peers. Developments within industries such as farming, education, manufacturing, banking, entertainment, etc. means that ICT is now used widely both in the private and public sectors.
There have been dramatic changes in global economics in the last two decades through the flow of trade, foreign investment and of course technology, with a major rise in the manufacture and spread of information and communications technologies (ICT). For the course of this paper, ICT, a general purpose technology will be used to include in broad terms, computers – software and hardware, telecommunications, satellite communications, email and internet. Development in ICT has been a major contributory factor to the growth of productivity and economy in the United States (US) and the European Union (EU). Productivity is linked with both the ICT producing (manufacturers) and using (service) sectors. The rates to which countries adopt, use and invest in ICT differ. Some were quick to exploit the many benefits of using ICT while others saw it as a passing fad and so were slow to react to it. D’ Costa, A (2006) writes that a ‘new economy’ emerges when sectoral developments and structural changes are combined with ICT and services. This leads to a knowledge-based information society, which is relative to competitiveness and growth. The end of the 20th century sees countries in the European Union and the United States leading the ‘new economy’ The OECD has reported that there will be continuous and sustained long term growth in the ICT sector because developments of new services and products will drive demand for them higher.
This paper will examine the effects of CT and technological changes on the economic growth of the European Union and the United States.
An Overview of the ICT industry in Europe and the United State
Information and Communication Technologies are now means for firms to achieve competitive advantage over their peers. Developments within industries such as farming, education, manufacturing, banking, entertainment, etc. means that ICT is now used widely both in the private and public sectors.
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