Courses : Intermediate Macroeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion Innovation And Technology In A Dynamic Economy Innovation and technology have an important role in economic growth. Both of these can increase productivity and efficiency in production, speed up the innovation process, create new jobs, and result in faster economic growth. One of the ways innovation and technology affect economic growth is through increased productivity. With more sophisticated technology and new innovations, the production process can become more efficient and productive, so it can produce more output with the same input. By increasing productivity, production costs can be reduced, and product prices can be more affordable to consumers. Innovation can also accelerate the process of creating added value, thereby creating new jobs. Innovation and technology often require specialized skills in certain areas, which can create new demands in the labor market. By creating new jobs, the unemployment rate can decrease and people's welfare can increase. Innovation and technology can also create new opportunities for small and medium enterprises (SMEs). In the digital era, SMEs can take advantage of technology to grow their business and reach a wider market. With digital platforms such as social media and ecommerce, SMEs can promote their products effectively without having to spend a lot of money. In addition, innovation and technology can also accelerate overall economic growth. By increasing productivity, creating new jobs and creating new business opportunities, innovation and technology can drive faster economic growth. This can improve the welfare of society as a whole through increased income, increased living standards, and increased social welfare. However, innovation and technology can also pose challenges to economic growth. One of these challenges is the digital divide between technologically advanced and less developed regions. This can result in economic disparities between more developed and less developed regions. In addition, innovation and technology can also cause structural unemployment if workers do not have the skills needed to keep up with technological advances. In this case, the government needs to play an important role in promoting innovation and technology, and reducing the negative impacts that may occur. The government can provide incentives for companies that innovate, increase people's access to technology, and promote skills training programs to increase workforce capabilities. Innovation and technology have a very important role in the economic growth of a country. Both are often considered as the key to increasing the productivity and economic competitiveness of a country. Innovation can be defined as an action or process to develop new ideas or introduce significant changes in an existing process, product or service. While technology is the practical application of science and engineering used to create new products or processes, or improve existing products or processes. When innovation and technology are applied within a sector or industry, it can increase productivity and efficiency, enable the development of new products and services, and promote economic growth. For example, by implementing new technology in the production process, a company can increase its productivity, reduce production costs and increase its competitiveness. In the long run, innovation and technology can also create new jobs and make a significant contribution to overall economic growth. For example, the rapid emergence of the information technology industry in the United States has created many new jobs and contributed to the country's economic growth. In addition, innovation and technology can also play an important role in enhancing a country's ability to address social and environmental problems. For example, renewable energy technologies can help reduce greenhouse gas emissions and solve global environmental problems, while innovations in health can help reduce mortality from disease and improve people's quality of life. Overall, innovation and technology can be important drivers of economic growth and social progress. Therefore, the government and the private sector need to encourage and support innovation and technology to achieve sustainable long-term progress. The characteristics of investing in innovation and technology in economic growth include: 1. Focusing on technology development and innovation to create new products or services that are better and more efficient. 2. This investment requires a larger capital compared to other investments. 3. Generate a long-term impact on a country's economic growth, because the resulting technology and innovation will be sustainable. 4. Investments in innovation and technology tend to be high risk, because there is a possibility of failure in the development of technology and innovation. Examples of investing in innovation and technology are: 1. Apple invests most of its revenue in research and development of new technologies for products such as the iPhone and MacBook. 2. Samsung which focuses its investments in technology in the production of electronics and chemicals for products such as smartphones and televisions. 3. Amazon which invests a lot of resources into technology development in e-commerce and logistics. One example of technological innovation that has a major impact on economic growth is the internet. The Internet allows access to information and communication without geographic boundaries, which enables faster and more efficient economic growth. The Internet has also enabled the creation of new business models such as e-commerce, online advertising, and social media, all of which have opened up new opportunities for economic growth. The characteristics of technological innovation in economic growth are: o Able to increase the efficiency of production and distribution o Able to create new business models o Able to create new jobs o Able to increase the competitiveness of a country or region o Able to improve the quality of life and welfare of society.