Technology Can Spur Economic Growth

3 Ways Technology Can Spur Economic Growth

How does technology affect the economy? That’s one of the questions people have as the world undergoes a digital shift. Kids are now more likely to prefer computers over TV. Likewise, the Internet is where many businesses operate. So let’s look at the relationship between tech and economic growth.

1) The Shift to the Information Age

One way technology is changing the economy is through its sheer market dominance. Back then, manufacturing and mining companies would top the list. But that was the industrial age; the world today is in the information age. The more people become acquainted with computers, the higher the market value of tech companies become.

As of 2018, the three most valuable public companies in the world are Apple, Amazon, and Microsoft. All of them had humble beginnings but are now business juggernauts. When it comes to premium devices, people go to Apple. If they want to buy a product without having to leave the house, they go to Amazon.

Plus, everyone is familiar with Bill Gates and Microsoft. If those weren’t enough, Google has since turned into Alphabet Inc. Last year alone, the conglomerate earned at least $136 billion in revenue. Simply put, tech companies stimulate the economy. They make people want to buy and sell on a constant basis.

2) Pressuring Companies to Embrace New Tech

Another way tech affects the economy is how it forces companies to think about the future. The world is clearly going digital — so what can the ‘old’ businesses do to thrive in a new environment? For one, they can invest in software technologies and shift to a more tech-focused business.

For example, BlackRock was founded in 1988 and is known as an investment management corporation. But the company has had a successful transformation. They’re still in the business of finance, but they’re no longer limited to selling bonds to insurance companies.

Now, BlackRock is utilizing technology to help out investors. The company has its own investment platform called Alladin. Around 25,000 individuals use the operating system to manage investment risks. BlackRock even partnered with the micro-investing app Acorns last year. Clearly, it’s welcoming significant technological changes in order to remain competitive.

3) Consumers Are Adapting Faster to New Tech

One may think that the rapid changes in digital tech would make it difficult for consumers to handle all the new information, but that doesn’t seem to be the case. For example, it didn’t take long before people understood the value of using drone technology.

Likewise, people are now open to learning all about Bitcoins and investing in cryptocurrencies. Computer users know how to secure their data. Not many of them need technical assistance in knowing how to uninstall VPN on Windows 10. How quickly people adopt tech significantly changes supply and demand.

Technology is changing both businesses and how people live their lives. Not everyone is open to change, but that doesn’t mean the world will stop for them.