Technology and Economic Growth

Tech2Technology is inarguably one of the fastest growing industries both locally and in the global economic arena. With many counties adopting policies and building frameworks that will enable then remain competent and relevant, growth in this industry has yet to reach unimagined limits. Technology, especially information and communications technology, has brought a shift to the economy with the benefits and positive effects being seen in all levels. Lives are changing and better standards of living and trade are being realized. The common benefits are:

Job creation.

The technology sector, more so ICT is one of the biggest direct job creation avenue. By 2020, there is an expected growth of computer and information technology jobs by 22.5%, which is well over 700,000 jobs. For every job created in the technology industry, there are additional 6-7 jobs created elsewhere. This will definitely come with increased salaries and a wider range of products and services.

Contribution to GDP growth.

Technology has a huge contribution on the growth of the Gross Domestic Product in various countries. If we take a look at ICT for instance, an increase of 10% in penetration of broadband translates to a 1.5% increased GDP growth in emerging markets. Globally, this increase in connectivity, especially in the 3G platform has paved way for a 0.57% GDP growth. This growth has been spurned by growth in the SME and e-commerce.

Emergence of new industries and services.

Technology has seen the rise of more products and services in trade. As a matter of fact, more products and services have become more and more digitalized and available in the internet. The inception of cloud computing is one of the hall marks of modernization. Emergence of the App industry for instance is purely technology based and has been made possible by the Information Communication Technology. From banking to conferencing, from ordering for services to mobile money transfers like M-Pesa in Kenya, there are numerous way in which technology has seen the birth of products and services in new dimensions.

Workforce revolution.

There is a new way in which people get things done. Work can be subdivided into small tasks and then contractors outsourced. Microwork platforms like oDesk have enabled entrepreneurs to cut costs while getting quality services from competent personnel all over the globe at the click of a button. These platforms then have the spillover effects to other platforms like the payment and money transfer systems.

Innovation in business.

More businesses are adopting the trappings of technology. Many of the businesses- about 90% of them- have an online presence for instance. Technology therefore has brought in new ways of reaching to customers. Other than better ways of reaching to customers, better quality goods and services are entering the market thanks to technology. Improved efficiency and streamlining of services has been crucial in propelling growth in the economy. There is much less loss that occurred from pilferage and abuse of company resources like time and vehicles for personal gain. Technology has therefore been a powerful tool in growth of businesses at all levels.