Republic of the Philippines POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Office of the Vice President for Academic Affairs COLLEGE OF ACCOUNTANCY AND FINANCE SUBJECT Economic Development (ECON 306) ACTIVITY # 1 NAME Jayceelyn J. Santos PROGRAM/YEAR/SECTION BSA 1-8 ACTIVITY QUESTION 1. Discuss the role of technology in economic development. How has technological innovation influenced the growth trajectories of both developed and developing economies? Provide examples to support your arguments. ANSWER In a world where technological dependency has become a norm for different sectors of society, technology plays a big role in supporting and greatly impacting the factors that drive the economic development of a certain country. A variety of studies across the world have proven how technological innovation has become the primary contributor to the economic growth trajectories of both developed and developing economies. Such roles are considered to be multifaceted and complex. One of the primary roles of technology was boosting economic productivity. Through the various automated machines, devices, equipment, and tools made possible by technology, an increase in the productivity of workers in businesses has been observed. This could mainly be because automation enhances productivity by making processes more efficient, Republic of the Philippines POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Office of the Vice President for Academic Affairs COLLEGE OF ACCOUNTANCY AND FINANCE reliable, and adaptable to the changing business needs. As automated systems can perform tasks faster than humans and even without breaks in between, the time needed to complete routine tasks is now reduced providing efficiency for the workers. Together with this, businesses can ensure reliability for automated systems as tasks are performed consistently reducing the chance of making human errors while improving the quality of the output. Moreover, technological innovations are also providing the changing business needs making it adaptable as well with the economies and consumer’s needs. This is because automated systems typically can be programmed and controlled, thus they can be configured for new processes and in performing different tasks as needed. As technology increases productivity in labor, it also increases the production levels of businesses. All of which contribute to the economic trajectory growth either in developed or developing countries. In Addition, technology has enabled new products and services that open up new markets and revenue streams further fueling economic growth. Advanced technologies have enhanced research and development leading to product innovations that help to create business opportunities boosting the market. It also helps to improve the products of the existing Republic of the Philippines POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Office of the Vice President for Academic Affairs COLLEGE OF ACCOUNTANCY AND FINANCE businesses providing more timely and quality products that meet the changing demands of consumers. Through this, customers could continuously patronize business products that satisfy their needs boosting the market trade and continuously providing the needs of the economy. Lastly, technology has opened up doors for globalization that enabled businesses to expand their market while breaking geographical barriers and creating a global economy. The creation of the Internet particularly has led to revolutionizing the way business operates as many social media or websites provided by the Internet enable them to reach customers and markets worldwide. This globalization has led to increased competition, forcing businesses to adopt best practices and benchmark themselves against international standards leading to constant innovations and improvements in products that meet customers’ demands. All of these roles and contributions proved how technological innovations influenced growth trajectories either in developed or developing countries. According to (Barron, 2023), Japan is a developed country with a long history of technological innovation, Japanese AI-driven considered to robots increase are labor anticipated and productivity while decreasing errors and labor costs leading to an Republic of the Philippines POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Office of the Vice President for Academic Affairs COLLEGE OF ACCOUNTANCY AND FINANCE increase in the global or international competitiveness of Japanese manufacturing enterprises that could improve the sector’s export potential promoting economic growth. Moreover, According to (Valdez & Standard, 2024), the Philippines as a developing country has embarked on a journey toward embracing digitalization using it as a catalyst for innovation, social progress, and economic development. They found out that it bolsters the economic growth of the local business in the country. In fact according to the study by (Ramon et al., 2023), in the 2022 GII1 report, the Philippines ranks 59th among 132 economies, with the country doing well in yielding innovation outputs, despite low inputs. Technological innovation indeed plays a crucial role in economic development and how it influences the economic trajectories and growth of both developing and developed countries. Its key roles include boosting productivity, increasing the level of production of businesses, enabling new products and services that provide business opportunities, enhancing research and development for product innovations, opening doors for globalization enabling businesses to expand their market promoting international trade. The influence of technological innovation has already been seen in Japan as a developed country and the Philippines as a developing country on their economic growth trajectories. The changing needs of People Republic of the Philippines POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Office of the Vice President for Academic Affairs COLLEGE OF ACCOUNTANCY AND FINANCE require a constant adaption that is all made possible because of technology. Technological innovation has indeed shaped economies across the world. Its influences are undoubtedly complex and multifaceted which contribute to the factors that drive the economic growth of countries. With proper government or authority management, economies can ensure continuous growth through the help of technological innovations and People can live in a world supporting their demands improving their quality of life. REFERENCES: Valdez, J., & Standard, M. (2024, February 27). The digitalization drive: Philippines’ growth and potential - Manila Standard. Manila Standard; Manila Standard. https://manilastandard.net/?p=314420675 Ramon, J., Albert, G., Quimba, F., Serafica, R., Flor, J., Vizmanos, V., Neil, I., Moreno, A., Andrada, M., Muñoz, A., & Hernandez. (2023). The Extent of Innovation in Philippine Business and Industry: Results of the 2021 PIDS Survey of Innovation Activities. In DISCUSSION PAPER SERIES. https://pidswebs.pids.gov.ph/CDN/document/pidsdps2311.pdf
