Technological Change

Question 1

What is Invention?

Answer 1

Creation of a new idea, concept, method, design or product, that is entirely original or a significant improvement over existing solutions

Question 2

What is Innovation?

Answer 2

Process of taking an invention/new idea and applying it in a way that creates value, often by bringing it to the market, improving upon it, or finding new uses for it

Question 3

What is Automation?

Answer 3

Technological advancements, such as robotics, have automated various production processes, improving precision and efficiency.

Question 4

What is Digitalisation?

Answer 4

Adoption of digital technologies streamlines production through data analysis and real-time monitoring to optimise production schedules and detect faults early.

Question 5

Advantages of Technological Change?

Answer 5

• Increased Productivity
- Technologies often lead to higher output per unit of input

• Efficiency Gains
- Technologies can reduce waste and resource usage; costs may be lower and environmental impact may be reduced

• Lower costs
- Enhanced production efficiency can result in economies of scale, lowering average costs.

Question 6

What impact does Technological Change have on Product Development and Markets?

Answer 6

• New products
- Companies may invest in research and development (R&D) to create
innovative products.

• New markets
- Technological advancements can enable businesses to enter new markets.

• New industries
- New technologies can give rise to entirely new industries.

• Creative Destruction
- Innovation and technological advances may render existing products or industries obsolete.

Question 7

What influence does technological change have on the market?

Answer 7

Disruption of Traditional Markets
- Innovative technologies can disrupt established market structures.

• Creation of Oligopolies
- Certain technologies may lead to the dominance of a few large firms.

• Platform Markets
- Technology facilitates the rise of new market structures such as platform-based markets such as App stores and social media platforms

• Globalisation
- Technology enables companies to operate on a global scale, impacting market dynamics
e.g E-commerce