ABSTRACT
Technology plays an important role in promoting economic growth and economic development. With better technology, production would be greater, even without any increases in the use of factors of production. Improvement in technology leads to reduction in cost. Furthermore, new technology may help produce a new product. The effect of technological improvement or creation of new technology, therefore, is to increase the competitiveness of a firm. This in turn influences the competitive position of the particular industry and of the country. These observations are not only derived from theoretical models but are also supported by empirical findings. A number of studies have shown that technological progress has contributed substantially to economic growth. 1
