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A huge contribution with respect to growth in labor productivity is because of the collection in case of human capital and physical capital. However, if you want to know what an even greater contribution is, it will be introduction of technology. With new discoveries and technological applications, we,currently are seeing a highly advanced era.

If we talk in the context of labor in the current time and what it was 100 years back, we can see a wide contrast in both the cases. There are more number of carriages and a higher number of steam engines in comparison to what it was in the past. In olden times technologies were present, but we can say that the technology now is more advanced and productive.

This advancement towards technology is because of research programs and its development. Although there were numerous trials and errors associated with these developmental programs but with every positive outcome we gotnew discoveries.

If there is a growth in capital value, then only we can reap technological advantages. There aremuch far reaching and powerful technological advancement that we, humans,carry with ourselves generations after generations. Out of those areas, 3 essential ones are:

  • Mathematics
  • Writing
  • Language

Apart from these, another embodied technological aspect is physical capital.

An instance to explain this facet is the advantage of having steam engines. If you compare the mode of starting an internal combustion engine, a century back it would have been possible with the help of using thousands and thousands of horse-drawn carriages. But now, automobiles are their apt replacement.

 

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