Technological Dimension of Globalization

I. Technology and Globalization

Globalization has increased the pace of technological diffusion. Cross-border technological

transfer has not only contributed to rising domestic productivity levels in advanced and emerging
economies, but it has also facilitated a partial reshaping of the innovation landscape.

Technology is the vital force in the modern form of business globalization. Technology has
revolutionized the global economy and has become a critical competitive strategy. It has
globalized the world, which drive all the countries to more ethical standards

The spread of knowledge and technology across borders has intensified because of
globalization. In emerging markets, the transfer of technology has helped to boost innovation
and productivity even in the recent period of weak global productivity growth.

Why spreading technology matters?

Technological progress is a key driver of improvements in incomes and standards of living. But
new knowledge and technologies do not necessarily develop everywhere and at the same time.
Therefore, the way technology spreads across countries is central to how global growth is
generated and shared across countries.

During 1995–2014, the United States, Japan, Germany, France, and the United Kingdom (the
G5) produced three-fourths of all patented innovations globally. Other large countries—notably
China and Korea—have started to make significant contributions to the global stock of
knowledge in recent years, joining the top five leaders in a number of sectors. While this
suggests that in the
future they too will be important sources of new technology, during the period under study, the
G5 constituted the bulk of the technology frontier.

To trace knowledge flows, the chart presented gives a representation of these cross-country
knowledge links. Two features stand out. First, while in 1995 the United States, Europe, and
Japan were dominating global patent citations, China, and Korea (depicted together as “other
Asia”) have made increasingly large use of the global knowledge stock as measured by their
patent citations. Second, knowledge links have in general intensified over time, both within (red
arrows) and across (blue arrows) regions. An alternative measure for the extent to which foreign
knowledge is available for domestic use is the intensity of international trade with technology
leaders—and our study looks at this as well.
Globalization boosts technological development

The increasing intensity of global knowledge flows points to important benefits of globalization.
While globalization has been much criticized for its possible negative side effects, globalization
has amplified the spread of technology across borders in two ways. First, globalization allows
countries to gain easier access to foreign knowledge. Second, it enhances international
competition—including as a result of the rise of emerging market firms—and this
strengthens firms’ incentives to innovate and adopt foreign technologies.

The positive impact has been especially large for emerging market economies, which have
made increasing use of the available foreign knowledge and technology to boost their
innovation
capacity and labor productivity growth. For instance, over 2004–14, knowledge flows from the
technology leaders may have generated, for an average country-sector, about 0.7 percentage
point of labor productivity growth per year. This amounts to about 40 percent of the observed
average productivity growth over 2004–14. We find that one important factor behind the build-
up of innovation capacity in emerging market economies has been their growing participation in
global supply chains with multinational companies, though not all firms have benefitted as
multinationals sometimes reallocate some innovation activity to other parts of the global value
chain.

The increased transfer of knowledge and technology to emerging market economies has partly
offset the effects of the recent slowdown in innovation at the technology frontier and helped
drive income convergence for many emerging economies. In contrast, advanced economies have
been more affected by the technology slowdown at the frontier.

Evidence shows that technology leaders themselves benefit from each other’s innovation. This
suggests that, going forward, with the growing contribution of China and Korea to the expansion
of the technology frontier, there may be scope for positive spillovers from these new innovators
to the traditional innovators. Knowledge and technology do not flow in one direction only.

Spreading the know-how

Globalization brings a key benefit—it stimulates the spread of knowledge and technology,
helping spread growth potential across countries. But interconnectedness per se is not enough.
The assimilation of foreign knowledge and the capacity to build on it most often requires
scientific and engineering know-how. Investments in education, human capital, and domestic
research and development are thus essential to build the capacity to absorb and efficiently use
foreign knowledge. It also requires an appropriate degree of protection and respect of intellectual
property rights—both domestically and internationally—to preserve the ability of innovators to
recover costs while ensuring that the new knowledge supports growth globally.

Policymakers must also make certain that the positive growth benefits from globalization and
technological innovation are shared widely across the population, including by ensuring that
innovating firms do not exploit the newly acquired technology to gain excessive control of a
market to the detriment of consumers.
II. Technology and Its Growth

Technological progress and economic growth rates are linked, and the rise in technological
progress has helped improve the situations of many living in absolute poverty (World Bank
2008).

○ Technology is advancing quicker than the population is expecting. Throughout the past
10 years, technological progress is growing at an exponential rate—from productivity
software such as electronic mail and storage, to gene editing, and NFTs.

○ The introduction of technology in poor countries helps alleviate poverty and

consequently causes the growth of the economy. For example:

■ Technology reduces the cost of doing work. The lower cost of production helps
increase the profit margin, which is essential in eradicating poverty.

■ Technology opens doors for opportunities to do business or work and in turn,

increases the household income among the poor population.

● Mobile technology has great potential to increase incomes for small-scale

farmers and entrepreneurs by connecting them to better markets

■ Technology brings efficiency. It helps improve the means by which factors of

production are distributed and utilized. Technology helps communities and
individuals profit better.

● Farmers can learn how to improve their cow breeds for higher yield or new
crops through agricultural apps.

■ Technologies help charities and fundraisers stand with the poor.

● Most charities are using the internet and peer-to-peer platforms to raise cash
to help the poor or support innovations to improve the welfare of the needy
miles away.

■ Technology increases knowledge. The lack of adequate education is one of the

causes of poverty. Technology reduces poverty with the use internet and other
 technologies such as TV to educate the masses on various issues including better
production, hygiene, and dealing with disease outbreaks.

Although technology provides greater access to remote areas, cheaper machine and food
production, microfinancing and education thus increasing the economic growth of poor
countries, technology alone cannot be the only solution to the problem of global poverty because
if the root is not addressed, technology can and will only play second fiddle to the battle of
poverty. To fully become an agent of economic growth, what the poor require is not the
bombardment of technology in their society, but they need to be exposed to technology at a
gradual pace, along with other complementary external aid and reform actions, such as increased
education and communication in the government.

The spread of technologies across borders and around the world includes both:

A. The spread of technological knowledge (how to create technology)

Technological knowledge – It is the knowledge about certain ways of thinking about and
working with technology, tools, and resources. This includes understanding technology
broadly enough to apply it productively at work and in everyday life, being able to
recognize when technology can assist or impede the achievement of a goal, and being
able continually adapt to changes in technology.” (Koehler & Mishra, 2009).

- “How to create technology” à It is about the spread of knowledge on how to

develop a service or manufacture a product that is technological in nature; the
capability to make an innovation.

B. The literal movement of technology around the world (trade in technological goods)

Trade of technological goods includes the spread of technological products from the
country of origin to other parts of the world.

- E.g., Apple Inc., an American company known for manufacturing series of

computers and smartphones, began to spread and globalize when it started to
build factories in other countries for a wider distribution of the company and flow
of technology
According to Arjun Appadurai who considered technological globalization to be one of five
‘spheres of globalization’. He labeled technological globalization the ‘technosphere’ and
explained that it’s both an effect and cause of globalization.

The five spheres of globalization is also known as the five “scapes” of globalization.

 Technoscape or Technosphere
o “Technological scape”, is the global distribution of technology that allos ideas and
information to be communicated.
o It refers to the flows of technology or the global arrangement and movement of all
sorts of technology across worldwide boundaries

Major forms of technoscapes:

- Mechanical technology - Technology rooted in physical form such as

machinery, gadgets, cars, and so on. This is the kind of technoscape that
has existed throughout much of human history.

- Information technology – involves virtual technologies such as

telecommunications and software.

According to Appadurai, the flow of these technologies across boundaries causes the
occurrence of globalization, which in return these technologies are also amplified by
globalization.

Technology and its Growth Examples

1. Growth of Multinational Technology Corporation

- Liberalization of trade and economic globalization have facilitated the growth of

multinational corporations like Microsoft, Apple, and Sony.

- The reduction and removal of the restrictions across borders allowed the
exchange of technological assets between nations, and thus induced the
proliferation of multinational corporations.
 - Traveling around the world, chances that the televisions in all the airports are
from one of the four or five major television brands.

- Anywhere in the world, chances are the phones will be made by Samsung, Apple,
or another of the major multinational mobile phone corporations.

2. Mobile Banking

- Mobile banking has allowed people to access money both at home and around the
world at a faster pace than ever.

- In particular, smartphone stock trading apps allow for the ownership of capital to
be shuffled around the world faster than ever, helping to speed up globalization
and lower the cost of start-up capital to facilitate new business development.

3. Mechanization of Manufacturing

- While not the first thing we think about when considering examples of technical
globalization, this is one factor that has an enormous impact on our lives.

- Using machines for manufacturing lowers labor costs which has two competing
effects: downward pressure on labor costs (leading to cheaper goods) and loss of
traditional manufacturing jobs.

4. Media Globalization

- One effect of the spread of technologies and technological knowledge (primarily

from the developed to developing world) has been to also globalize the media that
is presented on technologies like computers and cell phones.

- E.g.., The use of online media streaming platforms (i.e., Netflix,

Crunchyroll) allows media culture to be spread across nations with utmost
convenience and ease.

- The United States has become a big exporter of media culture (through
Hollywood films, for example).
 - Media globalization, however, has the potential to dilute indigenous cultures and
develop one world culture (called cultural homogenization).

III. Global Trends in Technology

We are all aware that different technologies make our life much easier. Transformations in
technologies lead to the prominence of innovations within communication, education,
healthcare, and entertainment, implying that technology can be applied in other fields.

With that, here are some of the biggest global trends in technology:

1. Artificial Intelligence (AI)

The first trend is Artificial Intelligence, a branch of computer science wherein smart
machines are built to perform tasks that require human intelligence. This technology is
more efficient and also increases work productivity. Less time is required for tasks, data
obtained are more accurate, and large amounts of information can be analyzed. Some
applications of AI are:

● Smart assistants like Siri and Alexa

● Self-driving cars
● Manufacturing robots
● AI in Healthcare, Tourism, and Education

2. Internet of Things (IoT)

The second trend is the Internet of Things, which basically covers everything connected
to the internet, but the term is mainly used to define objects that provide sensor
information and enable interaction among devices. Furthermore, it makes communication
between people, processes, and things possible. A few examples would be:

● Wearable devices
● IoT in Manufacturing, Transportation, and Healthcare

3. Virtual Banking
 The third trend is Virtual Banking, a system where transactions in banks can be done
online, without needing to go to the physical branches. This both saves time and money
as users can easily check accounts, saving accounts, certificates of deposit, and other
features. Some virtual banks are:

● Revolut
● PayMaya
● Applications of banks like BDO and BPI

4. Extended Reality

The fourth trend is Extended Reality which originated from the gaming and entertainment
industries and has now been integrated into education, marketing, and practical trainings.
This uses advanced computer technology, graphics, and systems that allow users to
immerse themselves in a virtual environment. This involves:

● Virtual Reality and Augmented Reality

IV. The Positive Impact of Modern Technologies

A. On Society
1. Healthcare & wellness advancements - access to a good healthcare plan.
Healthcare made affordable for everyone. Tech options for both patients and
healthcare professionals have immense potential to improve public health entities’
efficiency. Abnormality detection for fetuses is an example.
2. Education - increased knowledge and understanding. Easier access to education,
especially due to the internet and the World Wide Web (WWW). Examples
include virtual reality, Artificial Intelligence, neuroscience, and learning sciences
tech.
3. Environment protection & smart cities - sustainable solutions. Solutions are
also made for environmental degradation, and problems alike. The concept of
smart cities is also related to environmental protection. Many cities around the
globe are using tech solutions to implement measures to reduce waste and
pollution and optimize energy usage. Example of this is electric cars.
 4. Equal opportunities - improvements in industry and jobs. Equality to products
and services and minimizing socioeconomic gaps among societies and people.
B. On Globalization
1. Interconnectedness of the world - interdependence is initiated by globalization.
Several countries depend on each other for resources. This often helps nations to
get what they lack from other nations. A good example of this is getting
manpower and workers from other countries.
2. Enhances Global Communication - This is related to people all around the
world having communication. Communication was made convenient and helps a
lot in reconnecting people at a distance from each other.

V. The Negative Impact of Modern Technologies

A. On Society
1. Misinformation & Fake News - As technology and social media continue to
become prevalent in the society, it has become a tool to spread misinformation
and fake news, oftentimes creating deceptive stories and articles citing
unreliable sources. Some are using misleading headlines and clickbaits of certain
trend stories/news.
2. Issues on personal relationships and social skills - Technology has been a great
outlet for the society to utilize in replacement of certain social responsibilities:
Online communication rather than personal (physical, Face-to-Face meetings),
Machines and robots rather than human employees, online libraries, and search
engines rather than physical libraries. These were said to contribute to lesser
human contact and relationships. According to numerous researches, the
prevalence of technology contributed to greater risk of anxiety, loneliness, and
FOMO (Fear of Missing Out). It was said to also contribute to one’s self-esteem
and confidence declinement.
3. Children’s misdevelopment - With the prevalence of social media and
technology, parents often expose their children with gadgets over long periods of
time, this was said to contribute to the following: low creativity, aggressive
 behaviors, physical inactivity, delays in language development, low academic
performance, lack of attention, and more.

B. On Health
1. Physical Health decline - Given that technology and social media has served as a
tool to make physical works less strenuous, it also made the public more attached
to their social media life, which was proven through various researches which
states that people spend too much time online. Given this fact, it contributes to
less physical work, movements, and exercise, contributing to unhealthy weight
gain and decline of one’s physical health.
2. Sleep Quality - In relation to the no.3, researches show that social media overuse
contributed to insomnia and poor quality of sleep. As stated, people spend a lot of
their time in social media and utilizing various technological platforms. The high
screen times were proven to contribute to certain sleep issues, such as being
insomniac, having poor quality of sleep, and lesser sleeping time.
3. Eyestrain - As technology and social media could hold one’s attention for long,
this contributes to longer screen time, screen glare effects, and optal issues. The
longer we spend online, the longer we strain our eyes, especially when the
brightness of one’s device is inappropriate or straining to the eyes.
4. Back issues - Utilizing social media and technological platforms, we often
develop poor posture, which continues to worsen as the time goes by that we do
not correct it and hence continue to be of that poor posture when using social
media and other technological gadgets and tools. This is due to the fact that when
most people use their devices, they are often looking down, with their chin
pointing downwards. This puts strain on the nape and back area, which
contributes to spinal and back issues.

C. On the Environment
1. Air Pollution - With the emergence of various technological advancements, air
pollution continues to rise as harmful or excessive quantities of gasses such as
carbon dioxide, carbon monoxide, sulfur dioxide, nitric oxide and methane are
being introduced into the earth’s atmosphere. The consequences of air pollution
 include negative health impacts for humans and animals and global warming, in
which the increased amount of greenhouse gasses in the air trap thermal energy in
the Earth’s atmosphere and cause the global temperature to rise.
2. Water Pollution - The most common pollutant of water bodies such as lakes,
rivers, oceans, and groundwater, are products of technological advancements,
which include industrial effluents, insecticides and pesticides. Some are also due
to human activities such as domestic waste. Water pollution of our natural water
bodies can lead to degradation of aquatic ecosystems. Detrimental effects include
diseases such as typhoid and cholera, and the destruction of ecosystems which
negatively affects the food chain and biodiversity and extinction rate.
3. Depletion of Natural Resources - As humans continue to consume natural
resources for utilization in various technological platforms and advancements, our
natural resources are being depleted, with the most severe forms being aquifer
depletion, deforestation, mining for fossil fuels and minerals, contamination of
resources, soil erosion and overconsumption of resources. These mainly occur as
a result of agriculture, mining, water usage and consumption of fossil fuels, all of
which have been enabled by advancements in technology.
4. Emissions - In relation to Air pollution, technology also contributes to the
growing emissions of the globe, as our devices may not release any emissions but
the generation of all the electricity they use does. Most energy comes from fossil
fuels, so the more energy we use, the more emissions we cause. As our internet
relies on internet and server centers and towers, these massive server networks use
an equally huge amount of electricity which produces a huge amount of carbon
dioxide. The production and shipping of technology also leads to more emissions,
as factories need energy/electricity and trucks and other forms of delivery
transportation need diesel. As the public acquires new gadgets, it means more
emissions from the manufacturing and logistics industries.

VI. Media and Globalization

According to Carolina Matos (2012), mass media plays a key role in enhancing
globalization, facilitating cultural exchange and multiple flows of information and
image between
countries through international news broadcasts, television programming, new technologies,
film and music.

➢ Media globalization is a cross-cultural exchange and dissemination of ideas and

information on a global scale using media products and forms. The flow of information
and data are incorporated in media sources such as magazines, internet, or television

Media are tools used to deliver and store information, thoughts, and emotions through
physical or online dissemination. There are four features of media:

1. Print media - a written or pictorial form of communication produced mechanically or

electronically by printing, photocopying, or digital methods, which multiple copies can
be made.

Examples: books, circulars, journals, lithographs, memos, magazines, pamphlets, and

periodicals.

2. Broadcast media - a form of communication where information and data are delivered
by speaking.

Examples: Television, radio, audio and video clip

3. Digital media - an umbrella term often treated as synonymous with new media or
computer-mediated communication; a form of communication with the use of electronic
devices.

Examples: Internet, Mobile, laptop, and desktop communication

4. Internet media - A impacts and its features. Websites provide information in the form of
video, text, and audio.

Examples: E-mail, social networks or websites, online forums, podcast

Impacts of Media to Globalization

➢ According to Olowo (2018), electronic media or digital media became a noteworthy part
in uniting individuals.
 ➢ The creation of online groups is expanding multifaceted acknowledgment among
individuals which is an extreme wellspring of globalization - encouraging in breaking
social, sexual orientation, cultural and national obstructions.
➢ Westerners and other Asian countries perceived Filipinos as one of the happiest people
worldwide. With the influence of the media, for example, the frequent introduction and
advertisement of Philippines customs and tradition by the foreigners through vlogging
has become the way of why Filipinos are considered to be resilient and optimistic around
the world given any situation. Some testimonies of the westerners are incorporated
through writing in magazines and journals. However, the media do not dig into the real
issue of a certain population and only focus on the surface. Despite the fact that Filipinos
are optimistic even in life-to-death situations, they still struggle with different societal
problems such as poverty, corruption, and capitalism.

VII. Internet and Globalization

❖ Internet

According to Dennis and Khan in 2022, internet is defined as “a system architecture that
has revolutionized communications and methods of commerce by allowing various
computer networks around the world to interconnect.

In the age of the internet, it can be seen as the core of a technological communication
revolution which brings about a new, post-industrial “information age”.

❖ Roles of the Internet on Globalization

● Internet as a universal medium
○ internet has become the universal medium
○ it allows collective identity and collective action to manifest itself across
great geographical distances
○ it connects people and distribute diverse content around the world
● The internet is playing a major role in the growth of worldwide
interconnectedness
 ○ The internet has become a powerful tool for connecting to a variety of
people, areas, ideas, and cultures. With the advancement of
communication technologies, including the mass media, people have
transformed the way they conduct their affairs as well as businesses.
○ Digital media reduces entry barriers, lower costs, and accelerates the
return on investment more than any other communication channel in
human history.
○ According to Katerina R., and Aneta R. (2014), the internet as well as
globalization encourage businesses to internationalize and significantly
increase the flow and types of cross-border goods, services, and capital
transactions.
● Internet has become a global storehouse for a wealth of popular culture
materials
○ It allows consumers to freely store, share, and edit content of all sorts.
○ The internet enables the active consumers of popular culture to build and
maintain transnational identities based on global popular culture materials.
● Stronger sense of awareness and voicing options
○ People can easily share their stand and opinions about certain things or
issues.
○ We can now easily understand others’ perspectives to maintain
harmonious relationships. It creates a flow of culture that allows them to
communicate effectively.

VIII. Digital Globalization

❖ According to a new McKinsey Global Institute (MGI) report, Digital globalization: The
new era of global flows. And although this shift makes it possible for companies to reach
international markets with less capital-intensive business models, it poses new risks and
policy challenges as well
● more so, according to Schilirò (2018) in his research….
❖ Digital globalization, is defined largely by flows of data and information, is a new form
of globalization. It brings about relevant changes regarding how business is done across
borders, the flow of economic benefits, and broadening participation.

❖ Digital globalization in the twenty-first century is fostered by digital technologies and

characterized by accelerating and increasing flows of data and information. In the process
of digitalization of the economies, global data flows are surging and digital platforms
allow more countries and smaller enterprises to participate (Schilirò, 2018).
● WHAT GOOD DOES IT BRING
❖ As pointed out by the McKinsey Global Institute (2016), cross-border flows of data are
also increasing (e.g., cross-border bandwidth has grown 45 times larger since 2005).
Global flows of data primarily consist of information, searches, communications,
transactions, video, and intra-company traffic. They underpin and enable virtually every
other kind of cross-border flow. Thus, digitalization is having a profound effect on global
trade and investments, transforming industries and sectors across the globe.

❖ Furthermore, many companies tend to grow more complex and inefficient as they expand
across borders. Digital technologies can tame complexity and create leaner models for
going global. Digital globalization also pushes companies to change their business
models as they rethink their organizational structures, products, assets, and competitors.
Big corporations, as well as small- and medium-sized enterprises (SMEs), are taking
advantage of digital globalization. They profit in the same way, transforming themselves
into micro or “pocket” multinationals. SMEs are using digital platforms.

❖ EXAMPLES ARE:

(e.g., eBay, Amazon, Facebook, Alibaba) to connect with customers and suppliers in
other countries. In addition, small start-ups tend to become global quickly by exploiting
digital platforms.

❖ Finally, the growing nationalism not only can hinder trade, but also it can favour various
forms of digital wars, slowing down the process of digital globalization. In conclusion,
new features of digital globalization include (Schilirò, 2018):
➢ Intangible and accelerating flows of data and information

➢ Greater participation by emerging economies

➢ More knowledge-intensive flows

➢ Importance of digital infrastructure

➢ Growing role of SMEs, start-ups, and individuals

➢ More exchanges of free content and services

➢ Instant global access to information

➢ Innovation flows in both directions for advanced and emerging economies.

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