Technology and competition as challenges of development

Abstract

Technology stimulates output and creates new demand. The introduction of new technologies usually causes an increase in investments, which creates more jobs in companies that produce capital goods. Competition occurs as a function of output quality. On the other hand, technology reduces costs by increasing efficiency in regard to output. This leads to one of three effects: the prices of the denoted products or services decrease, the wages in industries that apply new technologies increase, and profits increase. These three effects are the results of competitiveness as expressed by technology. The significant characteristics of technologies are: increase in productivity, quality improvement, cost reduction, flexibility, reliability, security, etc. They are, actually, the basic prerogatives for competitiveness. By deciding on a new technology, the general characteristics of every individual technology are assessed in order to ensure the technical and economic justification for its implementation