The growth of tech sector economic dominance

The growth of tech sector economic dominance

The Growth of Tech Sector Economic Dominance

The tech sector has been growing at an amazing rate over recent decades and has played a vital role in bolstering the economy of several world power countries. It has since gone from being a small-sized sector to a giant sector and has brought about innovation, growth, and productivity. It has taken giant leaps into the future, comprising of one of the most skilled indusries in the economy. The rise in demand for tech experts has been gradually multiplying along with their pay as more intellectuals are joining the sector.

The birth of digital computing systems, automation, virtual reality, etc., ushered in a large disruption in business and user statistics across economies. What caused this large shift was at first a small group of innovators like the founder of Facebook, entrepreneurs, and companies. Now, however, they are fast dominating global economics.

This explains why we have tech-giants like Facebook, Apple, Microsoft, and The Alphabet (Google). These are firms whose main focus is on designing and producing products with advanced technology that go a long way to boost up the general economy. There are however other companies that make use of these modern innovations produced by these tech giants but that does not mean that they contribute to the tech sector. This means that they also help the growth of other sectors as well as manufacturing.

History of the Innovation of Technology

You may recall the “dot-com boom” or the “tech bubble” era from the early nineties to the late nineties. This was the time that jobs in the technology industry went up about 30 percent causing a sharp decline in unemployment along with a rise in average salary. This meant that it was bringing in a huge return on its ventures. But in 2001, there was a very steep decline in jobs for the tech industry as most tech firms started going downhill. This continued until 2004 when there was a slight rise in jobs in the technology and innovation sector. This growth was more or less the same for about four more years, neither growing nor truly declining, until 2009. This was part of the great recession when most economies went down the toilet.

However, 2010 came with merciful winds that saw a gradual expansion of jobs in the sector and a slight increase in salaries. The employment rate rose to over 4.5 million in the United States reaching its first rise when the tech sector was first unveiled. Many industries have dominated the economy of several nations and even on a global scale from as early as 1990 like manufacturing. Today, however, the tech industry holds the key as one of the industries with the highest employment rate. While about 85% of jobs are in the service sector, about 41 percent of those service jobs are in tech. This is a huge number considering other sectors that are out there.

Technology and the World Economy

According to Investopedia, Computer Systems Design and Related Services are the first industry in the top 10 Fastest-Growing Industries in the United States. This industry is growing at a rate that is quite alarming (in a good way) and has given a large gap to other industries. According to Forbes, this is because “there’s just an obvious need in the economy for these types of services. Everyone uses computers and businesses rely heavily on technology now, so in my mind, it’s a no-brainer that these types of services are growing fairly quickly.” 2019 alone saw an 18% growth in the tech sector and there is expected to be a 16% rise in employment in this sector.

In light of the current events however, these numbers might not be expected to hold. However, while most companies are laying off workers and the whole economy is on lockdown, most industries are still relying on the tech sector to avoid shutting down activities.

Science and technology aim to modernize and enable ease of access and use of technologies across individuals and enterprises like do it yourself software (DIYS)  i.e., drag and drop software for web design and plugins for complex features. This is what paves ways for the production of cheaper products with relatively easier means. For instance, a car manufacturing company that uses robots in car assembly. Before the introduction of robots and automated systems, the assembly of cars had to be done manually which cost more and took way too much time. Now, an automated system can assemble thousands of cars daily hence the factory will make more cars and spend less in doing so. That also reduces the price of the product.

This goes to show how the innovation of technology brought about economic growth and while the whole global economy now relies on technology to grow and become better.  It has made immeasurable contributions to the economic and social-cultural life of most Nations. This explains why most countries that are not advanced in technology have the lowest economies like countries in Africa.