Economic Growth of the Country

This essay explores the impact of innovation and technological progress on the economic growth of a country. It discusses how innovation leads to growth and the role of technology in economic development. The essay also analyzes the economic growth of Australia and its use of innovation and advanced technology to sustain its economy.

ECONOMIC GROWTH OF THE
COUNTRY

Table of Contents
INTRODUCTION...........................................................................................................................3
IMPACT OF INNOVATION AND TECHNOLOGICAL PROGRESS........................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Economic growth examines the overall integrity of the country by determining its criteria
to produce products or strategy which they use to import or export goods and services. As the
growth of the country depends upon the time period and also some of the government norms
which they imposed upon other country in case of importing goods. As there are various
advantages which is examined through determining the economic growth of the country. In
respect of applying the solow Growth model in context of determining the economic growth of
the country applies on changes in perspective of technology and innovation regarding
establishing new products in country. Through this aspects it results in providing the overview of
the country in respect of producing or imposing prices on particular aspects.
IMPACT OF INNOVATION AND TECHNOLOGICAL PROGRESS
Solow Growth Model is an exogenous model for economic growth used for the analysis
of changes in the output of the economy. It is set within the framework neoclassical economics.
The changes in the economic growth is dependent on the capital investment, population growth
rate, increases in productivity and progress in technology growth. This model follows the capital
investment affects the economy of the country, if the rate of labours doubled then output will be
doubled. If the capital investment, population growth rate, savings rate is same then they have
the same steady state. The solow growth model only depicts the convergence according to the
condition basis, if the convergence path follows, the poor country grows faster.
Innovation leads to growth for the country in terms of its economy, innovations are major
contribution in every country's growth. The innovation is all about to modify the existing things,
increase their potential, make the products better. Apply new ideas to innovate the things for the
betterment of the growth in terms of economy (How does innovation lead to growth?, 2019). The
technological innovation gives several benefits, like the use of inputs available,to create or get
more output and enhance the productivity. As the productivity increases this will bring more
profit to economy. The countries work in field of innovation and technology improvement, gets
good and better result in their financial condition. This will bring more employment, citizens get
good quality of goods, better services, and there is improvement in the living standard of the
people. Innovations sometimes leads to downfall in the growth of the business, the disruptions
may be unsettling, so some people may lose their jobs. But when there is technology
improvement done, it builds up more ways to enhance the quality of productivity, also decreases

the cost of productivity at same production inputs, gets greater output. Technology brings new
business ideas, start new businesses. The communication becomes easier, the globalization of the
market is due to technology innovations. The encouraging new businesses the profits becomes
higher. This will higher the economy growth of the country.
The internet and other advancing technologies which helps to communicate and expand
the globalization quickly. For developing countries, the accessing of technology is quite costly
but beneficial, by improving the technology , boost up their economy. Distribution of the
technology should be equal, so that it would be utilized by everyone in the country. Encourage
innovations in the organization will resolve many issues. Technological innovation should be
prioritized by every country, n context to develop the economic growth.
Australia is world's 14th largest economy. It is rated as AAA by the global rating
agencies. Its best place to do the business, because it holds the latest technologies. They
contribute to innovate the new things. They don't debt much from the government. So they
enhance their businesses. The innovation helps in economic sector of Australia because it has
robust economy, dynamic business, innovative skills, global image. Their GDP increases 2.7%
every year. They utilize the available resources, like labours, technology, raw material at
maximum level. They produce maximum with the available resources, so the output increases.
Thus, by applying the Solow growth model in respect of identifying the innovation in
Australia results in bringing heavy demand in country. Australia is considered to be one of the
most productive country and also carries the strong GDP rate to manage the economy of the
country at the ninth position in respect of other countries (Solow’s Model of Growth (With
Diagram), 2019). The innovation can be done on the bases of carrying the strong procedure
which is adapted by company in respect of motivating employees to bring more productivity. In
context of applying the Model in determining the company strategies, this model applies on
examining the population of the country. In perspective of Australia, they are engaged with
25,992,369 population and also the population which is examined as 13.3% which is below the
poverty line. In terms of labour work force, it is interpreted that 13,141,429 person are engaged
in employment and also carrying their livelihood in better way. As Australia is covered with
various sectors through which they are carrying their business in wider ways such as in respect of
Services 79.2% are engaged in this business, in respect of construction business 8.8% and in
manufacturing business, it is around the 7.4% and also in many other fields. Thus, in respect of

analysing the solow growth models in respect of employment, they are interpreted on the bases
of focusing the outputs of the country be engaging with large number of people towards
accomplishing the targets of the company.
As every company in Australia plans their important criteria regarding bringing
innovation in respect of new products or innovation in existing products. By this aspects, the
demand and supply of the country is examined. The matters related to demand and supply is
examined through the matters which is related to quantity of the goods produced and also it sells
in market and in respect of their procedure, the prices are stipulated to determines the integrity of
the Country. In context of economic growth is examined, demand and supply are the two major
aspects through which the overall integrity of the Australia is determines. Innovation mainly
results in brining more stability of the company by bringing new products in market or changes
the previous products to retain the customer interest towards the services for longer time period.
Through this aspects it results in examining various techniques and methods which is to be
adapted by the company to attract the customer interest. As innovation is mainly done in respect
of bringing more demands of the products in market which result in beating the other
competitors in country by importing their products in Australia. As if the customer needs are
satisfied than in such manner the needs are to be fulfilled in respect of providing the accurate
products which are in demand by the customer regarding availing such products. By analysing
the results through this model is that Innovation can be done if the person are employed and
trained in right manner.
Firstly in the procedure of the Innovation, the man power is needed to take control over
the business and also bring new ideas at work place. This can be done by appointing the skilled
and experiences person which can handle the particular task in better way and also raise better
productivity. As it is previously examined that the employment ratio of the Australia is high and
also employees are willing to work and enhances their livelihood in better way. Thus, by brining
innovation at work place of new products are examined resulting in getting higher economy.
This procedure can be stipulated by the government of the Australia regarding financing
company so that they can provide more employment to people and by this process they bring
more innovation in promotion. Training is to be undertaken in respect of motivating employees
to think beyond their limits and also they can deal in providing the quality products which can
satisfy the needs and wants of the customer in better way.

In respect of applying the Solow growth model theory which is mainly designed for
attaining profits and stability of business for longer time period. The results are mainly
interpreted on the bases of labour and population growth through which the factors are examined
on the bases of employment rate. The government of Australia also support companies in respect
of expanding the business as by their procedure they are giving chances to employees to sustain
their life in better way. The helps can be initiated by government in respect of providing finance
to the company and also contribute some amount of the money in respect of polices which is to
be undertaken in respect of maintain their interest towards achieving target. The results which is
analysed through this model is that motivation is to be committed accurately so that interest is
secured and also they are motivated to accomplish the task within the stipulated time. The main
outcomes of the innovation is examined through employees satisfaction at the work premises.
This resulting in brining more productivity at work place and also the rate of poverty is to be
reduces in respect of getting proper economy to manage the overall integrity of the country.
Thus, by applying this model, the results are analysed by applying the Solow growth model
which reflect the changes in level of output by bringing more innovation at work place. This can
be undertaken through examining the long run concept in respect of motivating employees and
also providing training to provide more productivity in country.
The another impact which is arises through technological progress is that Australia is
considered to be top 10 spenders in world spending most of the time bringing innovation and
development at work place. The advance technology which is adapted by Australia are not only
adapted by the companies but also this system is stipulated in classroom also for the students to
get the advances knowledges regarding the particular field. The positive impact of technological
progress is stated that it helps companies to develop new ideas regarding promoting the
particular products (Technology, 2019). Thus, the aspects is that it results in getting accurate
results regarding the marketing techniques which is adapted by companies in respect of reaching
to large customer base. In context of matter related to conducting the research and development,
the major criteria is examined in respect of identifying the needs and demands of the customer.
They can also examine the changes which they needs to bring in respect of promoting the
products or designing the particular products.
Thus, by applying the Solow growth model in context of neoclassical economies the
results are examined on the bases of focusing the results of demand and supply of the country. It

can be done through interpreting the factors resulting to production, pricing and also the
capability of the consumer regarding availing the goods and services at large scale. In respect of
technology, it results in getting all such activities in better way if the accurate procedure is
committed. In the matter related to determining the economic growth of the Australia,
technology play the major role in respect of examining the results behind the import and export
of the goods instead of developing the own country ratio. As if the goods are imported in own
country it results in giving right to other country to enhances their economy at large scale. Thus,
the issue arises in respect of availing the other country products and also giving them priority to
use the country services to promote their products in market. In such manner, the research is to
be conducted by applying the solow growth model. As in this model, the demand and supply of
the products is to be undertaken in respect of using the advances technology in market and by
this procedure the strategies of the competitors are to be determined regarding using the
promotional techniques. Through this aspects the needs of the customer is to be undertaken in
respect of reaching to them personally and also sharing their reviews regarding attracting the
particular products or services. In respect of providing training to employees working in
company regarding advancement in technology, this procedure is initiated by the government
regarding making the accurate budgets. So that government is taking initiation regarding
enhancing their own country economy through developing the needs and demand of employees
regarding using the technology. As most of the business run through technology and in respect of
attaining the business through innovation or advanced technology. Thus by adapting the business
of Australia through technology, it results in promoting their products and services in global
market at large scale. By this procedure this earn more economy and also sustain their country
economy for longer time period.
This procedure is useful in respect of facing the recession period. As at the time of
recession, the innovation and advanced technology is useful in pertaining the interest of the
consumer towards the products and services. As customer interest are enhanced through
advanced technology and thus it can be done through reaching personally and also interacting
with them in respect of determining their needs and wants regarding attaining the particular
products. Through this aspects government also gets estimated expectation regarding the
availability of the products and thus through this procedure the strategies is to be adapted by
applying the model. In respective of applying the model, they can interpret the needs and

demand of the particular products and services and can save the economy through utilizing the
appropriate use of resources. In this manner, they can assume the accurate demand and supply of
the products and also retain the customer interest towards the services for longer time period.
Thus, the major aspects which is determined through analysing the economic growth of
country in respect of import and export of goods and services are linked up with the using the
various services which expand the country economy at large scale. In respect of capitalism, it is
considered to be the 16th largest stock exchanges in Sydney. Thus, from this perspective, it is
considered to be the most developed country which sustain the profits in the country for longer
time period. Due to their innovative ideas and advanced technology they approaches their
business globally and also estimated prices which satisfy the needs and demand of the customer
in better way.
CONCLUSION
From the above essay, the report concludes that economic liberalisation also plays the
vital role in respect of attaining more economic growth of the Australia. As liberalisation is
mainly imposed in respect of restricting the rules and regulation of government in respect of
import or export of goods. The impact of innovation and technological progress resulting in
sustaining the business in Australia by dealing in more products or also increasing the demand of
the products in market. Through this aspect, the impact of the economy is determined and also its
usefulness to chase the integrity of the country by using the advanced technology and also
innovative services to enhances the interest of customer for longer run. In such manner, they are
availing the model of Solow growth in better way and also the results are analysing in unique
way.

REFERENCES
Books and Journals
Online
How does innovation lead to growth?. 2019. Online. Available through:
<https://www.ecb.europa.eu/explainers/tell-me-more/html/growth.en.html>.
Solow’s Model of Growth (With Diagram). 2019. Online. Available through:
<http://www.economicsdiscussion.net/solows-model/solows-model-of-growth-with-
diagram/13067>.
Technology. 2019. Online. Available through:
<https://www.internationalstudent.com/study_australia/why_study_australia/technology/>.