Hi friends, in today’s article we are going to know about the role of technology in economic development. So let’s discuss in details.
Role of Technology in Economic Development
Technology is usually identified with knowledge about improved machinery, products and process. In a developing nations technology plays a significant role in the following way.
• To increase Productivity – The productivity of different sectors of UDC is very low which is responsible for low income. In order to increase productive capacity of different sectors and factors of production it is necessary to introduce modern technology.
• To increase growth Rate – The existing growth rate of UDC is very low which reflects their backwardness. In order to increase the growth rate technological change are needed.
• To accumulation of Capital – Technological progress is also important for capital formation or accumulation. This is because it raises the productive capacity of labour. For this reason capital process accelerated.
• To develop Infrastructure – UDCs are suffering form infrastructural backwardness. Technical changes will bring improvement in the infrastructural facilities such as modern communication facilities, transformation, etc.
• To increase Welfare – Development of technological knowledge increases welfare of the people. Technological innovations bring several new services which improved the standard of living and per capita income.
• To increase Employment – Introduction of new technology creates new job opportunities in different fields of production. The technological changes break the vicious circle of poverty.
• No wastage of Resources – Technology helps in removing wastage of resources in production. It is possible to have more output with same inputs in the presence of technology.
• Improvement of Quality – Introduction of new technology in the production improves the quality of goods.
• To increase human Capital – Human capital means skill and educated labour force the use of technology increases the skills of labour which leads to human capital formation.
Therefore, in a developing country technology an important role in the process of economic development.
So friends, this was the role of technology in economic development. Hope you get the full details about it and hope you like this article.
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