The global pandemic has changed how we live, and likely how we'll continue to live in the future. One of the most significant changes to come out of this period is a shift in the economy towards technology-driven digital services.
From online entertainment to iGaming, technological advancements have allowed countries around the world to create new economies and job opportunities for their people.
What are the technological advancements that have benefited economies?
Developing nations' use of technology has had a significant impact on their economies, lowering production costs at home, setting quality standards, and enabling cross-border communication. Furthermore, it has only lately been realized that there is a need for technologies suited to the capacities of the underprivileged in emerging nations. Uneven distribution and penetration of technology throughout the nation is a significant barrier to its spread in low-income countries that continues today.
The exchanging of goods over an electronic network is known as e-commerce. This practice has caused significant changes in the economy over the past ten years. Large commercial merchants like Amazon now control the market. The way we do business has evolved as a result of entrepreneurs leveraging technology, and even lone firms are now conducting transactions on Amazon's platform. Information technology-enabled electronic commerce, or e-commerce, is the driving force behind several transformations and the birth of a new economy.
One of the most significant changes in the global economy during this time has been the shift toward online entertainment. With travel restrictions and social distancing protocols having been put in place, people have had fewer opportunities for social interactions and recreational activities. As a result, millions of people worldwide turned to streaming services such as Netflix, Amazon Prime Video, and Disney+ for entertainment. This led to a surge in demand for content creators
, who can now make money from producing videos online with platforms like YouTube, Instagram, TikTok and Twitch.
Cell phone technology has the potential to significantly improve health in underdeveloped nations by facilitating access to banking, healthcare, services, and language translation. Mobile internet-connected phones are becoming more and more prevalent in such locations as they become more affordable and accessible, allowing underprivileged groups to access online information and services that they were previously unable to.
In many different ways, laptops, and computers are also boosting employment in poor nations. Computers with an internet connection are a useful tool for training, literacy development, and education in addition to giving users the chance to contact companies and look for jobs online. Students who have access to computers can develop their reading and writing skills as well as potential specialized skills using various applications.
Which Countries have shifted their economies as a result of innovation?
As a result, there have been a number of instances whereby certain countries have decided to try and take advantage of the technological advancements that have been possible to experience.
The United States has always been known for its innovation when it comes to technology but during the pandemic, it has seen major shifts towards online entertainment industries such as iGaming, streaming services like Netflix, Hulu, and Amazon Prime Video, as well as virtual reality gaming platforms such as Oculus Rift or PlayStation VR.
Furthermore, the shift in terms of the iGaming industry is perhaps the most evident across the US. Following the 2018 ruling by the Supreme Court, there have been a number of states that have decided to permit these activities, and as a result, revenues have increased.
Unsurprisingly, a great part of the income is coming from online casino gaming in NJ
since the state pioneered the revolution that has been experienced nationwide, and others have followed. While states like Connecticut, Delaware, and West Virginia have each enacted rules to some extent, we have seen states like Pennsylvania and Michigan elect to fully regulate internet gambling.These developments have led many states within America to become hubs for these types of industries while also creating jobs and driving economic growth through taxes generated from these activities. NJ paid more than $526 million in taxes in 2022
, thus providing significant revenue to the Garden State.
The United Kingdom is one of Europe’s largest digital markets and home to some of the world’s leading software companies such as Microsoft, Apple, and Google. During the pandemic, UK companies were able to capitalize on their strong foundations by investing heavily in digital transformation projects. As a result, they were able to quickly embrace remote working models while also launching initiatives such as iGaming and online entertainment services. This shift has given Britain an opportunity to focus on developing its digital infrastructure which is essential for maintaining economic stability in the long term.
South Korea is often referred to as ‘the world’s most connected nation’ due to its advanced telecommunications infrastructure and high levels of internet adoption rate. During the pandemic, South Korean businesses were quick to take advantage of this technological advantage by offering a wide range of online services including eCommerce platforms, video streaming services, telemedicine services, and even virtual reality experiences. These developments are helping South Korea remain competitive in an increasingly digitized global economy and create more jobs for its citizens.
Japan is one of the world’s leading innovators and has been successfully transitioning from a manufacturing-based economy to a service-oriented economy. Japan was quick to embrace new digital technologies such as blockchain, artificial intelligence
, and the internet of things (IoT). Japan also launched initiatives to encourage more entrepreneurs to establish start-ups in the country and promote a more open economy. These efforts have allowed Japan to create new jobs, increase its global competitiveness, and build an even stronger foundation for economic growth going forward.
Innovation has been essential
In conclusion, it is clear that innovation has been essential for countries trying to transition their economies during the pandemic. The shift towards a digital economy has been seen across the US, UK, South Korea, and Japan with each country taking different approaches based on their individual needs. In doing so, these countries have been able to create new jobs, improve their economic infrastructure and provide citizens with more access to online services. These factors will help them remain competitive in our increasingly digitized world going forward.