Technology And Development Of Emerging And Developed Economies

1104 Words Oct 6th, 2015 5 Pages
Technology and innovation play a major role in the development of emerging and developed economies, as it provides an opportunity for businesses to produce more with the same amount of resources and creates new markets and industries within an economy. However, the people who benefit the most from these technological innovations are those who are high-skilled workers. As the global economy continues to globalize and grow, there has been a noticeable shift in favor of those who develop skills and work in high-skilled labor markets.
a.) According to Adam Davidson in “Making it in America”, early technological improvements allowed a more favorable situation for those who were less skilled. Innovations such as steam and coal power started the shift away from an agricultural society in the US to the manufacturing powerhouse of the 1940s and onward; and causing the rise of populations in cities during the early and middle 20th century. (Davidson 2012) These early innovations made it easier for the low skilled workers to do their job, however as time has progressed it has developed to the point where firms can automate low skilled work. These innovation can also be a driver of economic growth by providing a technological advantage for workers working in the manufacturing sector. According to Solow model of economic growth, economic growth can be sustainable if the cost of production declines due to a technological innovation, then in the long run a business will have the potential…

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