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Review article

Technological Progress – The Main Factor that Determines the Development of the New Economy

Nataša RUPČIĆ


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page 181-199

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Abstract

The rapid development of science and technology in a turbulent
environment leads to numerous changes in the field of management,
leadership and organization. Science and technology
directly affect the fulfillment of educational, social, cultural and
other goals. Information, which includes knowledge, becomes
the economic resource of increased importance. The price of a
product therefore gradually equals the price of the information
used in its production. The whole concept of the so-called new
economy lies on information and knowledge. Modern business is
characterized by speed, connection and added value. Intangible
assets consisting of the employees' knowledge, their creativity, but
also trademarks, image, organizational culture and connection
with customers nowadays determine the company's value. The
modern business process takes place wihtin the global framework
where the only certain fact is uncertainty itself. This demands
quick responses, the organic way of functioning and
ability to adapt- the so-called organizational Darwinism. The
basic ground that sells products, adds values and creates competitive
advantage is knowledge. This leads to the conclusion that
the basis of every business activity is an organic, net-like and adaptable
organizational structure. The principal goal of such
organizational structure is to collect information. Even though
technology and knowledge based on technology cannot promptly
induce economic growth and create new jobs this is due to
happen after the period of adjustment. The new technology is
then expected to start a new economic cycle but on a higher
level. Precisely this creates the need to accelerate the process of
informatization and introduction of new technologies in the
Republic of Croatia. This would intensify the process of learning
and reduce the lagging behind of the Republic of Croatia.

Keywords

Hrčak ID:

19544

URI

https://hrcak.srce.hr/19544

Publication date:

30.4.2003.

Article data in other languages: croatian german

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