Economic Analysis: Disruptive Industries and Their Impact

This report explores the significant impact of disruptive industries on the economy, focusing on the effects of technological advancements such as robotics, nanotechnology, 3D printing, RFID, and cloud-based robotics. The paper discusses how these technologies influence various sectors, including manufacturing, retail, and medicine, and their implications for economic growth, firm productivity, and employment. It examines both the positive aspects, like increased efficiency and product innovation, and the potential negative consequences, such as job displacement. The report also highlights the importance of adapting to these changes through education and reskilling to maximize the benefits of disruptive technologies and mitigate their adverse effects, ultimately concluding that disruptive technologies have a net positive impact on economic growth.

Running head: How Disruptive Industries Affecting the Economy
How Disruptive Industries Affecting the Economy
[Document subtitle]
[DATE]
[Company name]
[Company address]

How Disruptive Industries Affecting the Economy
1
Introduction
In this present paper we will discuss the impact of “Disruptive Industries on the Economy”. It is
generally state that the innovation in terms of technology has been seen at the level of firm
productivity in terms of financial gain and the economic growth of industries. Recently we are in
the digital economy that will be critical time for the organizations a s well as for the economies.
The concept of digitalization has been integrated in terms of the current scenario and the role that
is played by the disruptive industries in transforming the economy will lead to shift in the
organizational structures and to maximize the impact of new technologies in terms of economic
growth and diversification.
This concept of disruptive technology has been described by Solow(1956) and Romer(1990) in
the terms that the more productive firms will act as a displacement in the current business
scenario. The rise in the economic growth of the second industrial revolution which leads to
higher standard of living is seen as the technological innovation. The role of technology has been
seen in the emerging market economies (EME’s)in relation with advanced economies which is
notably seen in the high growth East Asian countries(Leipzger,1993) which will be done through
learning and using technologies from abroad in successful resource mobilization and the building
up of physical and human stuff.
How Disruptive Industries Affecting the Economy
The inexorable parade of new technologies is describing on many fronts and terms. Almost every
advancement is done in terms of the proper breakthrough and continuing the list of various new
things that will make things bigger and growing.in terms of emerging technology we can say that
not every technology is altering the business in terms of social advantage, which will have an
impact on the status, cost of living and it will also rearrange the values in terms of digitalisation
Cable (Cable,1980).it is of utmost importance to the businesses and the policy makers leaders to
make it understood that what technologies will matter to them and accordingly makes plans and
policies for further proceedings.
In the latest survey conducted by mc. Kinsey, the applications of the twelve technologies that
were discussed in the report has a potential economic impact which will range from fourteen
trillion dollars to thirty-three trillion dollars till the year 2025. The findings are neither based on
prediction or on the comprehensiveness, but it is based on the in-depth analysis of the potential
applications which would create the consumer surpluses in terms of better products, low prices,
the better environment and good health. (Cooke ,2001)This report also pointed out that these
technologies have a massive transformation in economic terms which leads to digitalisation in
the recent coming years.
The report also stated that how the disruptive technologies in terms of industries will lead to
change the world by showing benefits and challenges and providing guidelines to the leaders of
different businesses and other similar institutions and economies. The most disruptive industries
will suffer typically from the two forces. Firstly the low barriers to entry in the sectors which

How Disruptive Industries Affecting the Economy
2
leads to more active competition. Secondly, they have the large business models which lead to
the generation of more and more revenue in terms of change. These organizations have
embedded the cultural and organizational challenges when it comes to changing the pace that is
required.
Advanced robotics
The enhancement of robotic tools with enhanced “senses," intelligence and agility, can make the
tasks gentle and financially more stable in terms of automation. The advanced robotic
technologies will create the significant benefits in terms of social awareness and help to the
society, which includes robotic surgeries which make the procedures easier and affordable, as
well as the robotic prosthetics that will help in restoring of functions like cutting in operations
and excessive pain of the patient.
The use of disruptive technologies will also create new trends in terms of digital technologies by
meeting the capabilities of humans , which will follow the use of a straight forward application
in terms of existing rules and communication patterns in terms of changing an environment.(
Kumar ,2009)The concept of advanced robotics will help in creating the exponential growth in
terms of computer ability with the same processing power which will helps in getting the quick
responses.
Nano technology:
The use of nanotechnology will involve the manipulation of matter in terms of atomic and
molecular matter. The technology is basically applied in the space and in the use of bio
technology which is going to play an indispensable role in the economy of any country in the
resent level and in the future as well. The two features of nanotechnology that have going to play
an important role in the disruption of an economy are:

How Disruptive Industries Affecting the Economy
3
 Helps in building products with more atomic precision
 Helps in manufacturing by using machinery based Nano scale devices.
These devices will bring precise atomic manufacturing in terms of latest improvements
and performance of products in terms of range and cost.
3D Printing:
The use of 3 d printing will also help in creating the object in terms of three-dimensional
plan. This will helps in changing the economies from the manufacturing perspective by
creating JIT supply chain. The different ways in which this technology helps in the
manufacturing process of economy are –
 Increase in the product design cycles
 Virtuality in terms of warehouse and inventory
 Increase in the speed of production with better quality
 Proximity in terms of customers supplies in real time basis.
RFID:
The use of universally accepted bar code will be replaced shortly by smart levels which
are called as radio frequency identification (RFID) tags. These tags re the intelligent bar
codes that will help in tracking the products in the shipping cart by making interaction
with the network system. The concept of RFID is basically used in the retail sector which
will help in minimizing the waiting time during billing to zero by maintaining a
communication network with the electronic reader that helps in detecting all the items in
the cart and rings up instantly. The sales of RFID readers will expect to grow from $738
million in 2015 to $ 5.4 billion in 2020.

How Disruptive Industries Affecting the Economy
4
Cloud based robotics:
It is an emerging field of robotics which will help in reaching the integrating storage, performing
services and computing in terms of a cloud platform. This technology enables the use of greeter
memory, computing power and use of interconnectivity in terms of robotics applications . Th
robots are becoming cheaper and more competent in terms of hardware technology which is
dazed by this technology. The use of complex surgeries can be performed by this technology
which will result in better medical care facilities through the concept of cloud computing, which
will enhance the medical sector of an economy.
The law of Moore’s stated that the way of understanding increases in terms of computing
capabilities which states that the processing power of computers will become double in every
two years. This means that the computing capabilities in terms of growth of and processing
power will be becoming cheaper and helps in performing the tasks quickly. The less expensive
and powerful computer is increasing the human level of performance. The technology has an
impact on the labor saving changes as well. The impact of disruptive technologies can influence
the manufacturing activities via the use of robots and 3D technology which will lead to
considerable consequences in the service sector as well.
The disruptive technologies have different perspectives for firms, employees, consumers and for
the economies as well. If the consumer will be benefitted by the use of latest technology which
allows the product to be cheaper leads to the rise in demand for the sophisticated products and
services. The effects on employee will also impact a lot in terms of some positive consequences
like increase in the efficiency level and the workplace flexibility, which will increase the
motivation level of employees and increase the efficiency at workplace.( DeSanctis,1994) But
the impact on employee will be on the negative side rather than on the positive side as the labour
force will be effected in terms of employment as all the workings will be done with the help of
technology and it will ultimately effect the unskilled and semi-skilled employees. The labour
workforce will also be effected due to the adjustment in the roles s new roles are created due to

How Disruptive Industries Affecting the Economy
5
the use of disruptive technologies. Due to the emergence of technologies the economy the need
of education and reskilling will be a need in taking advantage of machines.
The firms will be benefitted in the way by distributing the tasks in terms of man and machine .
the tasks that will be performed by means will be done by them, and the work which needs to be
done by machines will be done by the technology only. (Allen, L ,2008)The firms will adjust the
sustainability of disruptive technologies in terms of single industries, such as Siemens, or the
companies which can be able to adjust according to the disturbing trends like that of IBM , which
has a greater focus on the areas like mobile analytics, cloud computing, and artificial
intelligence.
The economies will be able to help themselves in the best way by avoiding the negative aspects
of disruptive technologies and facilitate adjustments in terms of reducing unemployment and
increase the income equality concept.
The effect of disruptive technologies on the economic growth is accounted in terms of GDP
growth as the benefit will be taken in terms of associated goods and services. This will include
the benefits of products and information in terms of social and digital media by reducing the
search and transaction costs.
In the words of Robert Gordon , he argued that technology will not increase the economic
growth in the long run by taking an example of the United States which will include the four
main points like demographics, education, inequality and government debt.(2014)he further
argued that these points will have an impact on the economic growth, but it will be at an average
rate of 2% per year between 1981-2007 to 0.9% for the period of 2007-32. He further states that
the annual growth rate of TFP will peak out in 1950 which is much lower in terms of 90’s . Thus
he argued on the fact that technology will not overtake the economic growth and thus leads to the
positive impact on the economic growth of nations.

How Disruptive Industries Affecting the Economy
6
Conclusion
In this research study that will be based on the concept of “effect of Disruptive Technology on
Economy” we find out the fact that disruptive technologies have a significant impact on the
economic growth of nations by providing benefits to the various sectors of economy like
manufacturing, retail, medical , government etc. the disruptive industries are prevailing in both
the economies i.e in developed economies and underdeveloped economies. The technology also
showed it positive and negative consequences in terms of nations economy as on one side it
showed a positive sign but on the other side it also showed negative perspective. The positive
perspectives will be seen in the advancement of technology and the use of better means of
technology which will increase the working and efficiencies of the firms which will leads to the
growth of the nation as a whole but on the negative side somehow it will create the scene of
unemployment as the place of humans will be taken by technology . but on studying both the
perspectives the possible findings will be there that the use of disruptive technology has more a
positive impact rather that the negative one by increasing the economic growth of the nations.

How Disruptive Industries Affecting the Economy
7
References:
Rinaldi, S. M., Peerenboom, J. P., & Kelly, T. K. (2001). Identifying, understanding, and
analyzing critical infrastructure interdependencies. IEEE Control Systems, 21(6), 11-25.
Cable, V. (1995). What is international economic security?. International Affairs, 71(2), 305-
324.
Hyman, R. (1989). Political Economy of Industrial Relations: Theory and Practice in a Cold
Climate. Springer.
Cooke, P. (2001). Regional innovation systems, clusters, and the knowledge economy. Industrial
and corporate change, 10(4), 945-974.
Stecke, K. E., & Kumar, S. (2009). Sources of supply chain disruptions, factors that breed
vulnerability, and mitigating strategies. Journal of Marketing Channels, 16(3), 193-226.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of
information technology. MIS quarterly, 319-340.
DeSanctis, G., & Poole, M. S. (1994). Capturing the complexity in advanced technology use:
Adaptive structuration theory. Organization science, 5(2), 121-147. DeSanctis, G., & Poole, M.
S. (1994). Capturing the complexity in advanced technology use: Adaptive structuration
theory. Organization science, 5(2), 121-147.
Allen, L. (2008). The technology implications of a nation at risk. Phi Delta Kappan, 89(8), 608-
610.