Economic growth at the expense of technology

Abstract

In this article the authors aim to emphasize the effect that improving technology has in ensuring the conditions of economic growth. It is known that in Clark-Douglas’ production function we encounter the three factors, namely capital, labor and resources. Of course, economic growth can be achieved by improving labor productivity, increasing the efficiency of the use of capital and using resource efficiency. However, among all countries that have approximately equal conditions, growth is somewhat differentiated. This is primarily due to the quality of the technology used. In the current conditions, we can no longer talk about the industrial revolution but about the development of industry on a modern basis, as a result of research, innovation and inventions. The version launched by the Solow model expresses views on the role that technology plays in the economic growth of an area of activity, of a country or, if we want to think about the European Union, of this economic community as a whole. Addressing these issues one by one, it follows that indeed the technology, explained in theoretical and even concrete terms, has a particular effect on economic growth. The authors used an appropriate technology, namely the interpretation of the data and indicators that the National Institute of Statistics, Eurostat or the European Union provide. The analysis is also a logical one in the sense that, by the way in which this data is expressed, it is ensured that the possibility of using technology in increasing economic growth is ensured.

Keywords

• economic models
• research
• development
• innovation
• technology
• economic growth