The document discusses the relationship between changes in technology and industry, and their impact on economics. It provides examples of how certain technological innovations from the past, such as the transistor, had impacts on the economy that were only realized decades later. While changes in technology and industry do not always immediately impact the economy, over the long run they tend to have significant effects by transforming economic structures and activities. Key technological revolutions of the past, like the Industrial Revolution, have driven major economic transformation by increasing productivity and production.

1. INSTITUTIONAL NAME: DELHI METROPOLITAN
CAMPUS
AFFILIATED TO GURU GOBIND SINGH
INDRAPRASTHA UNIVERSITY
INSTITUTIONAL ADDESS: 28/1 KNOWLEDGE
PARK-III
GREATER NOIDA, UTTAR PRADESH-201306
CONTACT NUMBER-+919871388136
EMAIL ADDRESS – profsubrotoganguly@gmail.com

2. NAME OF THE AUTHORS:
 Mr. Subroto Ganguly – Faculty
 Miss Anam Siddiqui – Second year student of
B.A.L.L.B
 Mr. Rachit Sharma – Second year student of
B.A.L.L.B

3. It is a definite belief that whenever there is change in technology and industry, it
leaves an impact on the economy too. Generally change leaves positive
impact on economics because “New is always considered better”. Trends in
technology & Industry have been taking place from the ancient period which
has lead to massive impact on economics.
It is not necessary that change in technology will lead to immediate impact on
economics as lot of innovations that took place 50 years ago are now
affecting economy as these innovations have brought dramatic changes in
the way how goods and services are produced now-a-days. The above
statement can be proved with the example of transistor which was
developed for World War II & is now used for making computers, satellites,
micro processors, laser etc.
However it is not necessary that change in technology will leave a large impact
on economy. Until mid 1990s the investment that USA put in information
technology did not give any returns. Hence impact on economy was very low
though investment was there.

4.  The influence of technology has been keenly felt in financial factors
of the economy. People generally innovate new things by keeping
their money at risk. Most innovations contribute economic value by
unbundling risks & by shifting them in a highly calibrated manner.
 Before the invention of mobile phones, people used landlines which
were not easily accessible to all the sections of the societies. Hence
their production was also low but now even the people of the poorest
section own a mobile phone. Hence invention of mobile phones has
brought a positive change in economy.
 It is believed that pace of trends in technology & industry will
continue to rise in next few years and things that are out of reach of
some people now can be easily accessed.
 Not only technology but even industry also leads to a huge impact on
economy. During 20th century there was only labour intensive
industries i.e. machines were really less and labours were more due
to which the production was very slow and to meet the production
and demand the prices of the goods were increased so that only few
people could buy it. Though the goods produced at that time were
fine but lacked in quantity.

5.  These technological advancements completely changed the
economy but the biggest of them was capitalism which promoted for
market i.e. laissez faire (free trade). With laissez faire trade became
simpler and then people started trading which gave rise to the
economy of their country.
 We can also see the impact of economics through Indian context as
India’s economy was at depression before IT sector was developed
at Bangalore but after that India’s economy rose and this was
definitely not the only reason because India also had a workforce to
handle IT sector. Trends in technology and industry have impacted
on economy ‘this statement can be proved by looking at some world
powers like USA, UK, Russia etc. These Nations are technologically
very advanced and thus have made a mark on the whole world. Due
to its advancements in technology country’s economy was at its peak
because of which the people did not migrated from their country to
other country for work.
 But after 1920s then focus of industries shifted from labor intensive
to capital intensive i.e. more machines and less labour.this increased
production rate per hour. Hence demands were easily met and the
prices of the commodities were lowered down. So it gave a huge
boost for economy as of now the goods & services were easily

6.  An Important aspect of the acceleration of productivity is that its
increases have been held in check...Apparently firms hesitate to
raise prices for fear that their competitors will be able to keep market
shares from them by introducing new investments to produce at
lower costs.
 Some technological revolutions that have taken place in past years
which lead to impact on economy are:-
 Industrial revolution (1770-1840)
 Age of Steam & Railways (1840-1890)
 Age of steel & Electricity ( 1890-1940)
 Factories & Mass Production ( 1940-1980)
 The Information Age ( 1980-1990)

7.  Some Innovations & Technological discoveries occurred
during industrial revolution that had huge impact on
economy are:-
 Flying Shuttle- Simple Weaving Machine
 Spinning Jenny-Weaving machines with 8 spindles
 Water frame- Steam high quality threads
 Steam engine- to put the water out of coal mines
 Power loom- powered by steam & replaced by flying shuttle.
 The rocs- a very fast train (29 miles/hour)

8.  Incremental change in the quality and quantity of knowledge and
ideas that are applied in the stream of activities to enhance the social
and economic well being of the society is known as change in
technology. Due to the positive nature of the implied change, it is
also referred to as technological progress. Technological change
occurs through the process of invention, innovation and diffusion that
leads to the transformation of ideas and knowledge into tangible
products that have high utility value to human needs. The effect of
technological change propels economic transformation; a change in
the structure of an economy over time from a lower, rudimentary and
subsistence level to higher and more sophisticated level of
economic activities. Thus, economic transformation is the attainment
of significant high level of economic growth above previous levels
with capacity to sustain it through self-perpetuating economic
activities that are associated with industrial and post-industrial
production activities1.
 Economic transformation stems from high sustainable economic
growth that feeds from, and into technological change. While the
acquisition and application of technology is a key factor in achieving
economic transformation, economic

9.  activities are in turn, veritable source of technological progress.
Hence, economic growth, economic transformation and
technological change are intervolving activities that reinforce each
other. This three dimensional relationship reflects in the definition of
economic growth as a long term rise in capacity to supply
increasingly diverse economic goods to the population based on
advancing technology and the institutional and ideological
adjustments that it demands. Real productive activities engender
economic growth by ensuring a continuous improvement in the
methods of production, discovery of new resources and thus creating
the necessary conditions
 for efficient utilization of resources. Resources, in their natural form,
have limited direct economic use in satisfying human needs but
transforming them into goods and services enhances their economic
value to the society. The process of transforming resources involves
substantial mix of ideas (technology).
 We can sum up this discussion by concluding that when ever there
will be any form of change in technology or industry, the impact will
be seen directly on the economy.