Technological Reconstruction of the Global Economy

Irina Boiko

A chapter in Globalization from IntechOpen

Abstract: The chapter addresses the technological evolution of global economy since the yearly post war years until the beginning of world crisis in 2008. The author explains spectacular growth, demonstrated in the world economy, by implication of technologies, invented during "the golden age of technologies", the dual-use peculiarity for the majority of them and their subsequent transfer from the leading countries to the less developed, enforced the extension in scale of production and markets. It should be recognized that the technological system, launched after the World War II represents the backbone of the contemporary global economy, despite the different role of its main drivers: manufacturing production, trade in goods and services or foreign direct investments. The theoretical model of the steady-state growth most appropriately describes how the increments in capital and investments enforce the economic growth, no matter of where there are originating from. The 2008 global crisis reveals the exhaustion of the "technological source" for continuing growth of the world economy, reflecting in many ways the emerging discrepancy between technological development and economic growth: deindustrialization of the leading economies, "bubble effect", eroding the foundation for economic sustainability, "Dutch disease" for the oil-dependent countries, the bias toward the energy resources in the world trade in general and, of course, worldwide growing militarization. The chapter highlights the necessity for the revision of that states of affairs in the world economy and proposes in where to start creating the new global technological system as the new backbone for restarting the economic growth and international civil cooperation.

Keywords: technological change; epochal innovations; steady-state growth model; economy of scale; economy of scope; dual-use technologies; regional comparative advantage; creative destruction; localization of technological change (search for similar items in EconPapers)
JEL-codes: F60 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ito:pchaps:137877

DOI: 10.5772/intechopen.75096

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