Five Latest Technological Advancements Accelerating Global Economic Development

Among the primary goals of economic policies is to sustain economic growth. The trigger for this process can be generated by various techniques which include continuous technological change. Scientific innovations and technological advancements are vital drivers of economic performance. Some of the primary aspects of such transformation include the influence of information and communications technologies (ICT) on the world economy.

What is happening right now? There is speedy application of recent scientific progress primarily for new commodities and processes. Likewise, the rate of innovation has grown higher with a shift towards technology intensive industries and services. These modifications indicate that technology modernization is one of the keys to economic development. Yet, governments must implement the appropriate policies to reap rewards from this initiative. It also includes proper understanding of the roles played by technology and science in boosting economic progress worldwide. 

At the same time, they need to identify the latest technological advancements that will push global economic expansion.

Digital Technology

The first category is digital technology. Information technology revolution has propelled the extremely quick increase in processing of digital technologies along with fast decline of costs. Consider the microprocessor, one digital device whose advancement has been very vital to the IT innovation. Microprocessors (millions of miniature circuits) functioning as the brains of personal computers video games, automobiles, and even refrigerators.

Innovation in fiber optic technology was also crucial to the IT reform. Fiber optics allows data to be transformed at high velocity by means of glass filaments covered by telecommunications cables with huge capacity. Cables that extended to hundred thousands of miles have been set up during the last decade to improve the speed and capability of communications networks. A large number of technology corporations from different parts of the world have modified standard production of novel technologies. This has reached a certain level wherein they have sought more areas of improvements for their commodities.

Human Capital

The next is human capital. The labor force is often the reason why some corporations succeed and others fail.  Tech enterprises hire trained workers with full understanding of technology and problem-solving acumen giving them the upper hand over competitors. Remarkable transformation of the technology industry brought about the demand for more software developers, computer systems programmers and analysts, as well as information systems managers.

The escalating market for technology jobs will still increase as new technologies are integrated into contemporary society. As a result, more jobs are expected to become available to young graduates or professionals with IT degrees. Research pointed out that millions of job opportunities will be lost to foreign workers. However, these forecasts tend to overlook one important fact. That is the globalization of information technology and software services along with the dispersal of IT to other industries and enterprises will generate more demand for employment globally.

Cloud Computing

Cloud computing will contribute to economic growth and additional productivity together with shift in job varieties and skills needed by business organizations. According to a study, channeling investments in cloud computing will spur evolution in the smart phone services sector. Cloud computing has been rising steadily with the global market going up to more than $130 billion at the start of 2014. One of the top IT research corporations (Gartner) said this growth will go until 2020. In fact, a large portion of new IT spending will focus on cloud computing by 2016.

Cloud computing technology helps enterprises to store data offsite. Thus, there is no need for funds to acquire extra servers and storage hubs. Storing data on the cloud gets rid of expensive maintenance costs. Economic growth will carry on as more and more industries will recognize methods that cloud computing can work for them efficiently.

Mobile Technology

The glut of mobile devices across developed and developing nations has significantly amplified ways people and business organizations connect with each other. The mobile economy inspired new enterprises and radically modernized business strategies as well as progress of societies all over the world.

At present, the global mobile economy is worth $1.6 trillion or roughly two percent of international gross domestic product. Constant evolution of mobile applications and gadgets is expected to increase this output to around $2 trillion by 2017. Mobile technology adds extensively to world economic technology annually and puts in 0.39 percent to GDP and hundreds of thousands of fresh jobs. There is also confirmation of multiplier consequences on said outputs among countries investing funds in mobile infrastructure.

Technology Hubs

Finally, technology hubs like Silicon Valley, Tokyo, London, Germany, and South Korea have emerged. Pragmatic or practical evidence produces a positive relationship between technological modernization and economic performance. As technology turns out to be more omnipresent worldwide, an increasing number of countries are enticing tech conglomerates to set up divisions or subsidiaries in their respective geographical locations.  In fact, the United Nations (UN) formulated the Global Innovation Index to determine capabilities and outcomes in technological hub innovation.

Given all these scenarios, developing and developed nations are continuing to use technology as their primary option for economic development.