Role of Technology in Economic

Development

The technology can be regarded as primary source in economic

development and the various technological changes contribute
significantly in the development of underdeveloped countries.

Technological advancement and economic growth are truly related to

each other.

The level of technology is also an important determinant of economic

growth. The rapid rate of growth can be achieved through high level of
technology. Schumpeter observed that innovation or technological
progress is the only determinant of economic progress. But if the level
of technology becomes constant the process of growth stops. Thus, it is
the technological progress which keeps the economy moving.
Inventions and innovations have been largely responsible for rapid
economic growth in developed countries.

The growth of net national income in developed countries cannot be

claimed to have been due to capital alone. Kindleberger observed that
major part of this increased productivity is due to technological
changes. Robert Solow estimated that technological change accounted
for about 2/3 of growth of the U.S. economy; after allowing for growth
in the labour force and capital stock.
In fact, the technology can be regarded as primary source in economic
development and the various technological changes contribute
significantly in the development of underdeveloped countries. The
impact of technological change on production functions can be
illustrated with the help of following diagrams.

In the above figures 1 to 3 R is an isoquant of production function

before technological change and R represents the same quantities
output after the innovation in the first figure. The innovation is
neutral with respect to labour and capital. The new production
function R shows that the same output can be produced with less
labour and less capital after technological advancement.

The second figure shows that innovation is labour saving and R shows
that same output can be produced with lesser inputs but the saving of
labour is greater than that of capital. The third figure shows that the
innovation is capital saving and R shows that the same output can be
produced by less inputs after technological change but saving of
capital is greater than that of labour.

It is generally assumed that the technological advancement is even

more important than capital formation. But the capital formation
alone can bring out economic development to a limited extent and the
progress stops if there is no technological change. A country cannot
remain dependent on the import of technology. A nation that spends
more on science and technical research will tend to grow faster than
another country accumulating more capital but spending less on
technological.

In the first figure (4) the country A concentrates on accumulation of

more capital resources while in second figure 5, country B focuses
attention on technological aspects but does not regulate the
accumulation of capital. It is clear that the progress of country B is
faster than that of country A due to the high rates of technological
development. The concept that technological progress is more
important than capital formation is illustrated with the help of
production function in the diagram 6.
In the figure 6, OP represents the production function which rises to
OP,, OP2 and OP., with technological progress. On the production
function OP if amount of capital per worker raised from Rs. 150 to Rs.
200, the output per worker of labour is raised from SM to XM1, when
capital per unit of labour is Rs. 300 the output per labour is. ZM,. The
main objective of technological progress is to make a better utilization
of labour and other resources and hence the production function shifts
upward which means that more output per labour can be obtained by
the same amount of capital per worker.
The quantity of capital per worker remains at Rs. 150, the production
per worker goes on increasing from SM to NM. This is due to the
upward shifting of the production function. In the same fashion, more
production can be produced at other levels of capital intensity. Thus,
technological progress results in shifting the production function
upward which enables more output per labourer with same amount of
capital per worker.

Technology is always movingand it touches every part of our lives. Each year, we see
more and more of the reality that only existed in science fiction come to life. In 2014, we
saw our fair share of consumer, mass market mobile technological advancement, most
notably in the launching of the new smartwatch platform and the continued saturation
of the smartphone market.

However, we also saw a big move in technology other sectors as well, including
transportation, healthcare, and space exploration. So here are the 10 best technology
advances of 2014the ones that truly had us excited for the future:

10. Virtual Reality Goes Mainstream

Oculus Rift has been the talk of the town for a couple of years now, but after being
purchased by Facebook this year, weve been seeing the devices pop up in more and
more places. At this yearsSan Diego Comic-Con, Facebook teamed up
with Hollywood to create two unique virtual reality experiences: one for X-Men and one
for Pacific Rim. Both of the experiences were made uniquely for the platform and
immersed viewers directly into the action. Expect to see a lot more of this in the future
as virtual reality technology advances and more of the public gets to try it for the first
time.
9. Googles Contact Lenses Monitors Blood Sugar Levels
Google are taking their wearable technology ambitions even further with a smart contact
lensbut it might not be quite what you think. Its not Google Glass plastered onto your
eye. Instead of sending you Google+ notifications, its transmitters are used for an
entirely different end goal: monitoring diabetics tears for glucose. Google lens are being
developed by Google X, the offshoot of the tech giant that handles their most ambitious
and risky projects such as Glass and self-driving cars. These lenses see Google moving
further into wearable technologies and crossing over into healthcare tech.Jonathan
Keane

8. Ultra Short Throw 4K Projector is the Future of the

Television

The Ultra Short Throw 4K Projector was immediately one of the coolest things to come
from CES at the beginning of this year. We still view projectors as clunky, old
technology, but Sony is looking to change that with its newest possible addition to your
living room. Itll take an entire wall of your living room, but with its beautiful,
unobtrusive design, it fits in with the modern home pretty well. Say hello to the future of
living room screens.

7. HP Sprout Touch Mat Reinvents the Workstation

The real technological wonder of HPs Spout Touch Mat isnt in the development of
brand new technologies, but instead in how the device uses pre-existing technologies
together to do something entirely new. The idea behind Sprout is to reinvent the digital
workspace, using a an overhead projection camera that can detect finger/hand gestures,
track objects, and even interact with them in unique augmented reality use cases. Most
importantly, it has an interesting take on how the world of touch screens and traditional
desktop computers might interact and function in a universal, digital workstation.

6. Ind.ie Takes the Internet off the Grid

Every few weeks it seems that companies like Google, Facebook and Twitter are in the
spotlight for issues around security and privacy. Each time the public is able to catch
some small glimpse behind the curtain of what these companies are doing with all of the
personal information they control, there is inevitably a backlash, followed by some sort
of apology or explanation from the company.

5. Hoverboards Are For Real

Weve been waiting our whole lives for a real hoverboard and we were all successfully
faked out earlier this year by Funny or Dies video stunt involving Tony Hawk and
Christopher Lloyd and a fake company called HUVr. The whole thing came out as a hoax
though shortly after, to the disappoint of people all across the Internet.

4. Computer Chips are Becoming More like Human Brains

The idea behind the development of neuromorphic chips is to make them a bit more like
usand in turn, make computers better at navigating and modeling human behavior.
These neuromorphic chips, being developed by companies such as Qualcomm, are
designed to perceive beyond just their programming, such as being able to process
sensory data and react accordingly. Itll have a huge effect on robotics in the next few
years and continue reshape the way we think of computers and our relationship with
them.

3. Orion Test Flight Leads the Way for Human Mars Landing
The recent NASA Orion test flight has finally gotten Americans excited about the future
of space travel. The test has set the groundwork for future Orion launches, which
includes planned manned deep-space trips to an asteroid and Mars. Those might not
happen right away, but now that the first test flight has happened we couldnt be more
excited about what it could mean for the future.

2. Self-Driving Cars Will Be Everywhere

When we talk about self-driving cars these days, were not just talking about the one
made by Google without a steering wheel. Everyone from Tesla to Audi are testing and
implementing self-driving technologies to put in their high-end vehicles. While none of
them are doing anything as extreme as Google, clearly the influence is being seen across
the industry as the desire for self-driving features grows.
1. Googles Cancer-Detecting Pill
Google pushed strongly in the world of healthcare this year with its glucose-detecting
contact lenses, the Google Genomics cloud storage project, and most notably, its new
cancer-detecting pill. The pill contains magnetic nanoparticles that attach themselves to
cancerous molecules that may or may not be flowing through your bloodstream. The pill
would then actually be able to notify you on your wearable device whenever it has
accomplished its cancer purging. Even though its still years from hitting the market, its
one of those game-changing technologies that only Google has the money, intuition, and
ambition to create.