Global Economic Trends Driven by Technology and Innovation Essay
Nowadays companies operating internationally do not only face increasing competition in their markets, but also heavy macroeconomic driving forces the so- called global economic trends. These trends deeply transform markets and have a considerable impact on corporations. The question arises: what factors provoke the emergence of these economic tendencies? Without doubt, we can enumerate hundreds of factors, but I would like to pay a special attention to such aspect as technology and innovation.
The most common experts’ point of view is that they are exactly those forces, which contribute a lot to the process of shaping new trends. So, in this article I will try to analyze current trends in world economy driven by technical progress. Technological progress impact It is proven throughout the history that technology plays a key role in the economics development. Indeed, the invention of the automobile, the telephone, the computer, or the Internet has changed dramatically economic environment and, thus, business processes. Technical progress is believed to be the engine of economic growth.
Indeed, the positive relationship between technological progress and economic growth is a well-known fact but it is not the end of the story. Innovation and technology lead to a direct rise in overall
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Indeed, it is essential to recognize the possibilities that arise out of innovations. In other words the current trend can be described as follows: the early adapters of technology innovations will always be winners in global competition. Technical progress contributes to introduction of new products, increase of company’s effectiveness and efficiency, improvement of sales and purchasing processes. In fact, in order to stay competitive, global company should implement sophisticated cosmologies otherwise it lags behind. The growing importance of Research and Development activity (R) is another notable trend driven by technical progress.
What is more, sometimes R is “the last hope” for some companies. For example, at the beginning of the 21st century the giant corporation Procter and Gamble (P) experienced big business problems. The new CEO had no chance except setting of ambitious aim to start up new R campaign Connect plus Develop. Connect plus Develop team began to attract inventors and researches in order to generate new ideas and bring new technologies. Nowadays this campaign is the leader among projects focused on innovations and, thus, P successfully maintains its competitive advantage.
Finally, modern international companies tend to be flexible and dynamic. They are not afraid of difficulties and adventurous actions; they actively strive to surprise and amaze customers. So, no wonder that the current trend is to create Global Economic Trends Driven by Technology and Innovation By Tabby-Mahayana that always tries new things even though they could fail. Google has a long list of success and failures. Nevertheless, most of Google innovations are big, new projects, that have made or will sooner make our lives completely different. What do you think the main reason why many users prefer Gamma?
It is one of the latest Google innovations – protection technology that prevents and blocks spam mails. That is the secret. Information Technology revolution Speaking about technical progress, we cannot forget about information technology (IT) revolution that has made an enormous contribution to the development of global environment and international trade. Jack Walsh even claimed that the Internet is “the single most important event in the U. S. Economy since the Industrial Revolution”. Now due to the Internet the overseas companies are linked with their customers from all over the world.
Internet traffic is increasing day by day and, hence, e- business is in a hyper growth. So, the next trend is migration to cyberspace. Observing this tendency, professor Teresa Amiable writes in Working Knowledge: В«Customers are courted and supply chains are managed via websites, social media, ND email; marketing, manufacturing, and distribution processes are managed by sophisticated real-time information systems; colleagues working 12 time zones apart can see and hear each other as they work at their desks or in airport lounges on opposite sides of the planetВ».
Well, what is another consequence of IT revolution? We can say that it is the establishment of information, knowledge and expertise as the key resources. In fact, people have changed their attitude to the information. Global companies have recognized that in order to be responsive to variety of conditions ND situations, it is crucial to be open-minded, implement nonstandard approaches and think differently. In other words, today’s companies strive to use not only innovative technologies but also innovative ideas. Cataracts Coffee Company is a good example of such company.
Innovation is not Just a word for Cataracts. The company has always thought creative and added innovative ideas to their products or services. They have added different flavors to their coffee, more food on their menu, and even became one of the firsts to offer the Internet in their stores. Such retreat nature of activity enables global companies to maintain competitive advantage on the globe stage. Finally, the revolution of information technology (IT) has contributed to the shaping of information society. So, our today’s life calls for development of information industry.
Thus, it is not surprising that nowadays information driven industries such as finance services, entertainment, or high technologies benefit more than others. To draw the conclusion, it should be said that companies operating internationally tend to follow certain economic trends in their global practices. By the way, emergence of trends is the evidence that life is not static, but constantly changing and dynamic. It is hard to overestimate the role of technological progress in shaping of new guidelines and directions in economy.