How technology has changed economic growth

To economists, technology is something that helps to produce faster, better and cheaper. When we think about technology a good chance is maybe we think about the big machine or faster computers. But for economists technology is thinking extensively about new ways of doing things for example forms like gathering line production or making therapeutic vaccines are considered as technology. Indeed social or political things like language, cash, managing an account or even vote based systems are considered as Technology.
Technological innovation and economic growth are related to each other. Economists have tried to understand this relationship and found out that innovations not only increased the growth but also expand the economy. In 1956, a renowned economist named Robert Solow introduced a model called the “Solow growth model,”. This model tries to clarify economic growth using a nation’s stock of labor and capital, additionally a technological change variable that was supposed to grow automatically. The model anticipated that countries with little capital stock — would develop quicker in the short term than the developed countries but, in the long run, success pivoted on technological development. How powerful is innovation? Solow’s model motivated a field in economics called development accounting, which attempts to experiment with the things that justify financial growth.
For a country’s financial development, innovation, and economic growth are connected in important ways. But there are some limitations on how we measure economic growth. The most popular notion about economic growth is Gross Domestic Product (GDP). GDP measures the value of the final goods and services traded during a certain period of time. But GDP does not include some important but hard to measure things, for example — quality of life, leisure time and environmental effects.
Quality improvement is a major form of innovation but GDP has difficulty to measure it. Besides, GDP may not calculate any negative social consequences created by innovation, such as the horrible critics stick on technological development. In the short run, innovation may be associated with lower GDP growth. For example, the Great Depression.
The significance of technology within the present world can not be underestimated because it has overwhelmed nearly every area of trade and industry counting the benefits sector and one having no touch with this technological innovation would not be able to create any advance within the century to come. We can say that the significance of technology cannot be denied in arrange to attain economical development.

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