Technological change

Definition

Technological change refers to the process through which new technologies are developed and implemented, resulting in advancements in production methods, services, and communication. This ongoing transformation impacts economic growth, productivity, and social structures, often exacerbating or alleviating issues related to global inequality.

5 Must Know Facts For Your Next Test

1. Technological change can create both opportunities and challenges for economic development, influencing job creation and skill requirements in various sectors.
2. Rapid advancements in technology can widen the gap between developed and developing nations, as access to new technologies is often uneven.
3. Innovation can lead to increased productivity, which may not be evenly distributed among populations, potentially increasing income inequality.
4. The effects of technological change on employment can vary significantly; while some jobs become obsolete, new industries and job categories can emerge as a result.
5. Public policy plays a critical role in managing the impacts of technological change on inequality by promoting equitable access to technology and education.

Review Questions

• How does technological change influence global inequality?
  • Technological change influences global inequality by creating disparities in access to new technologies among different countries and communities. Wealthier nations often have greater resources to invest in cutting-edge technologies, leading to enhanced economic growth and productivity. In contrast, developing countries may struggle to keep pace, resulting in widening income gaps. Additionally, within nations, those with the skills to leverage new technologies can benefit disproportionately compared to those without access or training.
• In what ways can innovation act as both a solution and a barrier to addressing global inequality?
  • Innovation can serve as a solution to global inequality by developing new technologies that improve living conditions, enhance education, and promote economic opportunities in underserved communities. However, it can also act as a barrier when advancements are not accessible to marginalized populations, leading to a deeper divide. The benefits of innovation often accrue to those already advantaged in terms of education and resources, necessitating targeted policies to ensure inclusive access to emerging technologies.
• Evaluate the role of public policy in mitigating the negative impacts of technological change on inequality.
  • Public policy plays a crucial role in mitigating the negative impacts of technological change by ensuring equitable access to technology and promoting education that prepares individuals for a rapidly evolving job market. Effective policies might include investing in digital infrastructure in underserved areas, supporting lifelong learning initiatives, and fostering inclusive innovation ecosystems. By proactively addressing these issues through legislation and investment, governments can help create an environment where the benefits of technological advancements are shared more broadly across society.

Related terms

Innovation: The creation and application of new ideas, products, or processes that improve efficiency or effectiveness in various fields.

Digital Divide: The gap between individuals who have access to modern information and communication technology and those who do not, often correlating with socio-economic disparities.

Globalization: The process of increased interconnectedness among countries, driven by trade, investment, and technological advancements that influence cultural and economic exchanges.