• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Do you accept the argument that research and development is the central cause of economic growth?

Extracts from this document...

Introduction

Chosen Question 2 of 2: "Do you accept the argument that research and development is the central cause of economic growth? Explain how innovation systems at the national and corporate level have contributed to the development of major industries." Introduction: Every nation strives to increase its level of economic growth for several reasons. It is favourable from a political stand, as the increased standard of living will result in higher tax revenue and less money needed to be spent on social security as well as boosting civilian morale. Corporations will also benefit from economic growth, as it will mean higher sales as peoples disposable income increases. Economic growth is represented by an increase in national output for example over a twelve-month period. But what we have to consider is what role does research and development play in this process, and whether there are any other factors that have to be considered. Since the post-war period the spending on research and development (R&D) ...read more.

Middle

At this point we can analyse the other methods to gain economic growth. One method to increase the level of potential output is to increase the amount of resources available. For example the nations output depends on its stock of capital, and an increase in its stock will increase output. Increasing the amount of land and raw materials used can also generate a limited amount of growth. Supply side policies can also be used to raise the natural levels of output and employment by providing incentives to greater work effort along with risk taking to remove impediments, which might be blocking competition. One example is to increase privatisation as the private sector is seen as more efficient than the public sector. It is argued that a return of assets to private ownership will increase aggregate output. Also decreasing the rate of income tax will also have the effect of encouraging saving and increase work effort. Increased competition and deregulation will help increase mobility and efficiency. ...read more.

Conclusion

This is reflected also by some traditions for example the technocratic tradition that believe innovation and economic success go together. If we continue to look at the case of Britain we can also conclude that it has declined in its level of innovativeness, and since 1870 the level has dropped significantly which can be reflected by the demise of the manufacturing sector. An excellent example of innovative systems helping major industries to grow can be shown by the examples of the use of robots in the form of machine tools to do jobs on the production lines that humans would be less efficient at. For example the spraying of cars and the welding of parts are universally done by robot arms now. This has made the car industry grow as it saves both time and money. This is shown as the robot arm does not have to be paid or be given breaks, and will not be affected by social or political factors like normal workers. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Production - Location & Change section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Production - Location & Change essays

  1. The Role and Importance of Agriculture In the Carribean. Organisations involved in its ...

    The farms are owned and operated by individuals, groups or government. Advantages: o Maximum use is made of land space. o Farms have more than one source of income. o It is easier to check the spread of pests and diseases. Disadvantages * A higher level of management is required.

  2. Arthur Lewis's dual-sector model of development.

    He is in favor of not investing in traditional sector of the economy and keeping the rural income at a subsistence level. He could achieve this through various taxation policies and in this way a cash need would be created on the part of the farmer families which would cause them to sell surplus food.

  1. Stadium report. A stadiums presence has a vast range of effects on those in ...

    Yet, one might conversely argue that its subsequent veto by parliament hints that the area has still not reached its potential on a national, and indeed global, level. As a result of the veto, the proposed investment would not come into being, and neither would the extensive 'regeneration impact' 8 that David Cameron asserted would transpire.

  2. "Can the theories that Alfred D. Chandler developed in his book 'Scale and Scope: ...

    In order to follow Chandler's methodology to a certain extend, it is therefore crucial to define the growth industries of the late 20th century. 3. METHODOLOGY AND SELECTION OF STUDY OBJECTS This part forms the basis for the further analysis of the developments of the last decades by identifying the

  1. The Cause of the Industrial Revolution

    was delivered not by her rulers but by the wit and resource to devise new methods of production and new methods of administering industry."

  2. Assignment on Computer Integrated Manufacturing

    The CIM software module controls the state-of-the-art stacking and routing system and automatically schedules dispatching for subsequent manufacture-to-order assembly. Once the other components of the car such as the door or engine modules are completed a conveyor system delivers them directly to the final assembly line.

  1. In what ways are banks in developing countries different from banks in financially developed ...

    Today's Development Banks in LDCs While their main focus at the dawn of the industrial revolution had been the financing of risky businesses using new and unevaluated technology, development banks today are active in different spheres. First and foremost, the most striking difference is the notion of development lying at the heart of these banks.

  2. How Britain was represented in theFocus films

    by the overcast sky and mist that surrounds our characters during the scene. As a summary to the original question, I would say that the three films give mixed representations of Britain. They all seem to have disparaging views of the way the nation is run.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work