What does technology bring for our economy?

Technology innovation and invention are making our life more and more convenient and making production more efficient. More and more values are created to the global economy due to technology innovation and invention. The global GDP growth has started significantly since the Industrial Revolution, showing the importance of technology innovation and invention. In addition, technology innovation and invention could have a systematic effect on the global economy.

Technology innovation and invention add more competition to the labour market. Labours do not only compete with each other, but also compete with technology that if employers feel it is cheaper to develop new technology to replace human labours than hiring human labours then human labours will lose their jobs. In addition, technology innovation and invention also create trade barriers. Complicated technology can prevent less skilful labours from entering the market and also prevent some start-up companies from entering fields where require very complicated technology. Moreover, technology is a process of accumulation. When a tech company has more experience and accumulate more technology, its capability is improved dramatically, helping itself win competition with those which do not accumulate enough technology. Therefore, technology means more competition for labours but less competition for tech giants.

To conclude, when technology is developing so fast, it is easy for labours to lose competition in the labour market, so individuals have to learn new skills and knowledge more frequently in order to help themselves to maintain their competitiveness. Meanwhile, when a company has a technological advantage in a particular field, it can win the competition easily and use the profits earned to accumulate more technology in order to maintain its market power and prevent future competition.