Question

What do you think will be the impact of innovation, production and new technology on an equal economic society?

Answer 1

Definition :

Innovation is a process of transforming the new ideas, new knowledge into new products and services. In order to tackle with the situation and condition many multiple ways of productions are being tested and implemented. It should focus upon providing new products or else enhancing the existing ones to generate more demand. One cannot stop innovation as without any kind of innovation there won't be any development. Innovation cannot be limited to any specific matter, it can be related to any factor. Some activity in detailed steps are :

1. Introducing new product : Focusing upon introduction of new product which can be easily sold in the market.

2. Adapting to new type of production method :

3. Sourcing the right type of raw material.

There’s generally two ways to increase the output of the economy :

• Increasing the number of inputs that go to the productive process
• Come up with new ways to get more output from the same number of inputs

Impact of Innovation :

Innovation is a continuous process and without innovation none of the industry can sustain for longer period. Due to these there would be huge loss in employment. Multiple companies opt for robots and automated AI enabled devices which can perform of the function of any human being with no error. This may eventually leads to increase in unemployment. Similarly the whole society would be affected and eventually the whole economy.

For example: Robots replaces human working at multiple manufacturing company. (Robots=Zero error)

Purpose of innovation is to come up with new ideas that can increase the output with same number of inputs. Manual, low-skilled jobs and middle-income will be the one which are highly affected. New skill sets are required in all type of occupants.

Innovation also bring about an decrease in the living standard. Due to this many employee settles at a lower salary with high skill sets. In short innovation can't be limited but situation arising out of it can be tackled in a more efficient manner.