Economic growth is driven by technological innovation from "summary" of Basic Economics by Thomas Sowell
Technological innovation is a key driver of economic growth. When new technologies are developed, they often lead to increases in productivity, which in turn can drive economic growth. These new technologies can make it easier for businesses to produce goods and services more efficiently, leading to increased output and profits. Innovations in technology can also open up new markets and create new opportunities for growth. For example, the invention of the internet revolutionized the way people communicate and do business, leading to the creation of new industries and the growth of existing ones. This kind of technological innovation can have a ripple effect throughout the economy, creating jobs and increasing wealth and prosperity. It is important to note that not all technological innovations lead to economic growth. In order for an innovation to drive economic growth, it must be adopted and integrated into the economy in a way that leads to increased productivity. This can require investment in infrastructure, training, and other resources to fully realize the potential of the new technology.- Technological innovation plays a crucial role in driving economic growth. By creating new opportunities, increasing productivity, and opening up new markets, technological innovation can spur economic development and lead to greater prosperity for society as a whole. So, it is clear that economic growth is closely tied to technological innovation and the benefits it brings.
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