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Technology and entrepreneurship in economic development.
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Technology and entrepreneurship in economic development The history of economic development reveals that the production phenomenon is associated with labor, capital, technology and organization etc. However, the stress upon each factor of production has been changing from time to time. In the early periods of classical days, labor was the only factor of production. Afterwards, capital was accorded the major determinant of growth. But in recent days whole of the emphasis is being laid upon technological change ,
The main source of economic development. Perhaps the role of technology got too much importance due to labor shortage in western countries. The UDC’s which have shortage of advance technology have been found backward. In other words, the poverty and backwardness of UDC’s is attributed to the poor level of knowledge and technological change. Therefore, if these countries use advanced technology the can also join the race of economic Development.
Accordingly, the under developed countries should introduce modern technology whether it is an indigenous one, or it is acquired through external sources. Not only technological change, but the entrepreneurial abilities can also be employed for the greater growth rates .
IMPORTANCE OF ENTREPRENUEURSHIP 1. RISK AND RETURN: Classical economists associate the entrepreneurs with the phenomenon of risk and return. They say that it is the entrepreneur who borrows funds, rents land and hires labor against payments of fixed interests, rent and wages. As he is taking risk to make his enterprise a success; he must be compensated by giving him profit.
2. Inventions and Innovations: According to Joseph entrepreneur plays an important role in the capitalistic economies as he introduces inventions and innovations. Joseph considers the inventions and innovations more important than the physical resources of the country. It is so because that development consists essentially of employing existing resources in new ways. It is the entrepreneur who introduces innovations. By innovations he means a change in the production function which leads to increase the output of the economy.
Joseph introduces five types of inventions and innovations: 1. The introduction of a new method of production. It means to adopt such a technique of production which was not tested earlier. 2. The introduction of a new Good. It means to bring some new Good in market which was not used by the consumer earlier. 3. The opening of a new market. It means to introduce the Goods in the Goods market where they were not familiar earlier.
4. The conquest of some new source of supply. 5. The carrying out of the new organization of any industry which may lead to the creation of monopoly, or the breaking up of a monopoly power. TYPES OF ENTREPRENEURS From the previous discussion it is obvious that the entrepreneurs are something very much must for the sack of economic development. Now there rises the question that what type of entrepreneurs there should be.
1. INNOVATING ENTREPRENEURSHIP: In such type of entrepreneurship the entrepreneurs believe in new types of inventions and innovations. They have aggressive assemblage of information and they act upon new combination of factors. 2. IMITATIVE ENTREPRENEURSHIP: They are the entrepreneurs who are readily imitate the goods and techniques which have been invented by innovating entrepreneurs. 3. DRONE ENTREPRENEURSHIP: They are the entrepreneurs who are hardly prepared to accept the new changes; they refuse to adopt opportunities to make changes in their formulas even they come to know that accepting new changes will lead to reduce their costs.
