Question

Write a brief note on Innovation, Technological Change and Growth Innovation as it relate to economics.

Answer 1

Innovation describes the creation and implementation of ideas and innovations in economic terms that enhance goods and services or make their output more effective. The invention of steam engine engineering in the 18th century is a classic example of progress. Steam engines could be used in factories, allowing mass manufacturing, and transportation with the railways was revolutionized. More recently, the way businesses produce and sell their goods and services has been changed by information technology, thus opening up new markets and new business models.

When used properly, engineering can be extremely helpful in fostering economic prosperity. One such example of technology that creates a positive impact on the economy is on India— the Self-Employed Women's Association uses SMS to send messages about commodity prices to agricultural workers. This information helps farmers to identify the best places to sell their products. Farmers who took part in this program said they were able to sell their products across wider areas, which increased their incomes.

One issue that developing countries need to bypass is to prioritize innovation in technology, not just technology adaptation. Another issue is that there is a need for equal distribution of technology across a country; so far the poor have not been able to have the same amount of technology access. To solve these problems, it is necessary for organizations to track technology and encourage innovation and job creation.