Technology as enabler of economic growth

The rise of science and technology has been the key driving force behind the growing economic prosperity in the modern world. The use of technology makes it easier to produce goods at a lower cost and thus provide a rate of return more than the cost of capital for entrepreneurs and thus generate value creation. The development of new technologies and the creation of new applications from existing technologies helps to fulfill unmet needs of the society and the society becomes more productive in the process, creating a virtuous cycle of economic growth.

The discovery of electricity and its different applications was perhaps the first major technological tool that ushered massive economic development on a global scale. It made society more productive and led to other inventions in due course of time that supported economic growth for decades.

In recent times, the invention of the Internet has transformed the world into a small global village. People find it easy to communicate with each other and this has made booking a cab, ordering lunch or transferring money extremely easy. The global growth over the last 20 years has been driven by the rising use of the Internet. Nowadays, it is difficult to imagine a workplace with no internet connection.

Nowadays, the work is going at a fast pace to commercialize the applications of Quantum Computing, Artificial Learning, and Blockchain and they have potential to generate a next wave of economic growth.