The Role of Technology and Innovation on the New Economy Transformation

##plugins.themes.academic_pro.article.sidebar##

Published Apr 1, 2025
https://doi.org/10.71064/spu.amjr.1.1.2025.371
Download
PDF
Statistic
Vol. 1 No. 1 (2025): Special Issue - African Multidisciplinary Journal of Research (AMJR)

##plugins.themes.academic_pro.article.main##

Mary Wangui Mbugua
St. Paul's University

Abstract

Economic transformation is the continuity movement of resources from low to higher productivity activity which is crucial for creating employment and a more robust economy where little attention has been paid. Technology and innovation play a vital role in new economic transformation. This study will explore the pivotal role of technology and innovation on the new economic transformation highlighting their impact on productivity, employment and global competitiveness. The purpose is to understand how technological advancements transform the economy. The objectives will be characterized by digitalization, automation, and artificial intelligence (AI) and how they are redefining how businesses operate, government functions and individuals interact within the economies. This research seeks to identify the mechanisms through which technology will foster economic growth which will enhance productivity thereby generating new business models. Additionally, the study will analyse the role of technology and innovation in the transformation of the global economy discussing both theoretical perspectives and empirical findings to understand the opportunities and challenges posed by this new economic paradigm. The study theories included diffusion innovation theory and innovation theory. This study will employ an explanatory research design where case studies from different sectors will be analysed. The findings of the research outcomes will contribute to the literature on technology and innovation on the new economy transformation which will provide practical insights for organizations, leaders, policymakers, academicians and researchers who seek future research and interventions because of some of the challenges that may be posed. Additionally, the study will focus on future technological advancements and their impact on the new economic transformation. By understanding the role of technology and innovation in the new economy transformation, organizations can develop strategies that will foster economic growth and organizational productivity in order to transform the new economy. It is hypothesized that the role of technology and innovation will have a positive influence on the new economic transformation as the leaders and policymakers who will prioritize technology and innovation will improve on economic growth and organizational performance.

##plugins.themes.academic_pro.article.details##

How to Cite
Mbugua , M. W. (2025). The Role of Technology and Innovation on the New Economy Transformation. African Multidisciplinary Journal of Research, 1(1), 268–284. https://doi.org/10.71064/spu.amjr.1.1.2025.371

References

  1. Chen, J. (2017). Towards New and Multiple Perspectives on Innovation. International Journal of Innovation Studies, 1, 1. https://doi.org/10.3724/SP.J.1440.101001
  2. Chibuike Daraojimba, Kehinde Mobolaji Abioye, Adebowale Daniel Bakare, Noluthando Zamanjomane Mhlongo, Okeoma Onunka, & Donald Obinna Daraojimba. (2023). Technology and Innovation to Growth of Entrepreneurship and Financial Boost: A Decade in Review (2013-2023). International Journal of Management & Entrepreneurship Research, 5(10), 769–792. https://doi.org/10.51594/ijmer.v5i10.593
  3. Ciarli, T., Kenney, M., Massini, S., & Piscitello, L. (2021). Digital technologies, innovation, and skills: Emerging trajectories and challenges. Research Policy, 50(7).
  4. https://doi.org/10.1016/j.respol.2021.104289
  5. Cukier, W. (2019). Disruptive processes and skills mismatches in the new economy: Theorizing social inclusion and innovation as solutions. Journal of Global Responsibility, 10(3), 211–225. https://doi.org/10.1108/JGR-11-2018-0079
  6. Duan, M. (2023). The Role of Innovation in Economic Growth and How Techno-logical Advancements Transform Industries and Employment. Proceedings of the 2023 4th International Conference on Big Data Economy and Information Management, 658–661. https://doi.org/10.1145/3659211.3659324
  7. Fleurbaey, M. (Ed.). (2018). Globalization and Technology: Choices and Contingencies. In A Manifesto for Social Progress: Ideas for a Better Society (pp. 43–64). Cambridge University Press. https://doi.org/10.1017/9781108344128.005
  8. García‐Avilés, J. A. (2020). Diffusion of Innovation. In J. Bulck (Ed.), The International Encyclopedia of Media Psychology (1st ed., pp. 1–8). Wiley. https://doi.org/10.1002/9781119011071.iemp0137
  9. Gautschi, H., & Gautschi, D. (2016). Technological Innovation and Economic Transformation. Palgrave Macmillan US. https://doi.org/10.1057/9781137577368
  10. Imdadullah, K. (2023). The Role of Technology in the Economy. Bulletin of Business and Economics (BBE), 12(2), Article 2. https://doi.org/10.61506/01.00037
  11. Kaine, G., & Cowan, L. (2011). Using general systems theory to understand how farmers manage variability. Systems Research and Behavioral Science, 28(3), 231–244. https://doi.org/10.1002/sres.1073
  12. McMillan, M., Page, J., Booth, D., & Willem, D. (2017). Supporting Economic Transformation.
  13. Mohammed, S. (2023, November 4). Going Beyond the Curve: Understanding the Limitations of the Diffusion of Innovation Model. Medium. https://shahmm.medium.com/going-beyond-the-curve-understanding-the-limitations-of-the-diffusion-of-innovation-model-88f7f1997796
  14. Morikawa, M. (2020). Heterogeneous Relationship between Automation Technologies and Skilled Labor. The Research Institute of Economy, Trade and Industry.
  15. Nabila, E. A., Santoso, S., Muhtadi, Y., & Tjahjono, B. (2021). Artificial Intelligence Robots and Revolutionizing Society In Terms Of Technology, Innovation, Work and Power. IAIC Transactions on Sustainable Digital Innovation (ITSDI), 3(1), 46–52. https://doi.org/10.34306/itsdi.v3i1.526
  16. Nakamura, H., & Zeira, J. (2018). Automation and Unemployment.
  17. Nübler, I. (2018). New Technologies, Innovation, and the Future of Jobs. In E. Paus (Ed.), Confronting Dystopia (pp. 46–75). Cornell University Press. https://doi.org/10.7591/9781501719868-004
  18. Radicic, D., & Petković, S. (2023). Impact of digitalization on technological innovations in small and medium-sized enterprises (SMEs). Technological Forecasting and Social Change, 191, 122474. https://doi.org/10.1016/j.techfore.2023.122474
  19. Rammert, W. (2021). Technology and Innovation. In B. Hollstein, R. Greshoff, U. Schimank, & A. Weiß (Eds.), Soziologie—Sociology in the German-Speaking World (pp. 515–534). De Gruyter. https://doi.org/10.1515/9783110627275-034
  20. Si, S., Hall, J., Suddaby, R., Ahlstrom, D., & Wei, J. (2023). Technology, entrepreneurship, innovation and social change in digital economics. Technovation, 119, 102484. https://doi.org/10.1016/j.technovation.2022.102484
  21. Syrquin, M. (1988). Chapter 7 Patterns of structural change. In Handbook of Development Economics (Vol. 1, pp. 203–273). Elsevier. https://doi.org/10.1016/S1573-4471(88)01010-1
  22. The National Treasury and Economic Planning. (2024). Fourth Medium Term Plan 2023-2027: Bottom—Up Economic Transformation Agenda for Inclusive Growth. The National Treasury and Economic Planning. https://repository.kippra.or.ke/handle/123456789/4856
  23. Upadhyay, S., & Rawal, P. (2018). A Critical Study of Joseph A. Schumpeter’s Innovation Theory of Entrepreneurship. International Journal of Creative Research Thoughts, 6(1). www.ijcrt.org
  24. Vanclay, F. (1992). Barriers to Adoption: A General Overview of the Issues. Rural Society, 2(2), 10–12. https://doi.org/10.1080/10371656.1992.11005046
  25. World Economic Forum Report. (2023). Future of Jobs Report. https://www.weforum.org/reports/the-future-of-jobs-report-2023