Technology, Source Of Economic Progress

The progressive nature of scientific research is probably the most impressive example that can be given for the term of "progress", together with the belief that subsequent ages are improvements of the previous ones. Economic analysis of technical progress is to determine the effects of the use of new production methods, upon the performance of the economy. Technical progress, the result of research and development activity, is measured by productivity gains and by increasing the quality of the products. Technical progress can also determine the relative decrease of the price of the new goods, causing the increase of profitability and consumer benefits. Competition motivates companies in developing new products and new technologies for producing goods, less expensive. Innovation is not limited to the adoption of new technology, being the process by which technology is developed step by step, until production structures of the company acquire their new performance features, thus providing variety and higher quality of the products and remarkable fact, more accessible to the average consumer.