The article acknowledges that currently, the rates of innovativeness have increased but limited to the technological field of study (The Economist par. 1). Governments and several other research institutions are spending trillions of dollars in research and development.
This is what has given rise to the current technological advancements in computing, telecommunication and networking. In comparison to the 19th and 20th centuries’ innovations that were done in diverse fields, the concentration of current innovations in one field has made other fields to be ignored in terms of development. This has greatly slowed down the economic advancement of the current world.
The main challenge identified is the level of specialization that has been witnessed in the field of innovation (The Economist par. 2). The article asserts that increasing the areas of innovativeness will enhance economic growth.
Furthermore, the article appreciates that the current economic development is not as rapid as it was during the era of industrial revolution. This has been is attributed to other market forces. Such forces include government policies and the current economic crisis.
Innovativeness is currently at its highest peak. Since innovation is a key contributor to economic development, the present economic development is on a steady rise. This is largely due to the use of more efficient economic principles of development that have been advanced by technological improvements and innovativeness (The Economist par. 2). The modern world has witnessed increased technological advancements.
These innovations have positively influenced efficiency in the production sectors and therefore enhancing economic growth and development. Furthermore, there is increased connectivity around the world due the use of internet and mobile phones (The Economist par. 4).
The latter has resulted into globalization that has equally widened the market size. In addition, the current economic developments have resulted into the improvement of the overall living standards compared to the last two centuries. The modern world has elaborated and sophisticated systems of monitoring the economic processes. Consequently, the best strategies have been used for economic growth.
However, the current development has been slowed down as a result of specialization. The overconcentration of innovativeness in technological advancement has slowed down the economic growth in the 21st century (The Economist par. 7). The sustainability of the current technological advancements is unpredictable since most sources of energy are non-renewable.
The use of petroleum as a major source of energy is also threatening the sustainability of the environment. The governments across the world are not investing enough in minimizing greenhouse gases. Increased environmental degradation has greatly affected economic development. Moreover, inadequate innovations in these fields have slowed down economic development.
Furthermore, very little is being done in the management of agriculture which is a major economic activity. This demonstrates how several other fields of economic development have been left behind in the quest for global progress.
Apart from the limited innovations, there are other economic impediments that have significantly affected economic development. For instance, the current government systems have complicated policies and regulations.
The latter is a major impediment towards the implementation of innovations that have the capability of enhancing economic development (The Economist par. 8). In addition, the current economic instability has also slowed down the economic development. There are several economies that have been weakened by the recession period.
In summing up, it is pertinent to reiterate that economic growth is dependent on myriads of factors apart from innovation and technological advancements. Currently, the slow pace of economic development can be attributed to the limited scope of innovations that have impeded economic diversification.
Works Cited
The Economist. Growth: The great innovation debate. New York, NY: The Economist Newspaper Limited, 2013. Print