Technology can be broadly defined as the material result created by the application of mental and physical effort to nature in order to achieve some value. In this context, technology is the current state of knowledge of how to combine resources to produce desired products, to solve problems, fulfill needs or satisfy wants. It includes technical methods, skills, processes, techniques, tools and raw materials.
While many people think of technology development as relating to major change, a technological change of small proportions can yield significant results. In a pharmacy, for example, waiting time can be significantly reduced by routing prescriptions for filling based on complexity, rather than processing on a first in/first out basis. The pharmacy with shorter waiting periods will gain a competitive advantage based on improved service with all other factors remaining the same.
The growth of economies is directly linked to the development and application of technology. Funding of for large technological efforts have dramatically narrowed. Funding sources are generally governmental, private business or individual enterprise. The government is a major contributor to the development of new technology. In the U.S. many government agencies invest billions of dollars in new technology. Some government agencies are entirely dedicated to research such as the National Science Foundation. Technology is frequently driven out of the military with later adoption to civilian uses. The National Space & Aeronautics Administration (NASA) has developed many technologies to advance manned space travel that have resulted in commercial applications for everyday use.
There is a significant link between technology development and the education system. A large amount of the research funded both by the government and private sources is conducted at universities. Research funding can be a major component of university budget. The other important component here is the education of engineers and scientists in the numbers necessary to continue the growth of discovery in all areas. Universities in the U.S. actively recruit the best and brightest students from all over the world. A growing number of scientific students and scientific researchers in the U.S. come from China. While many remain in the U.S., many also return to China as a resource for technological development.
© 2006-2007 East-West Economic Development Center