Journal number 2 ∘ Ramaz Abesadze ∘
Technological revolutions - the basis of economic development

10.36172/EKONOMISTI.2021.XII.02.RAMAZ.ABESADZE

annotation. Often economic processes are studied without technological changes, while technological changes have the greatest impact on the economy, business cycles, and so on.

The article discusses the technological changes that have taken place on earth, which have had the greatest impact on the development of the economy and of humanity in general.

Keywords: technological revolution, "Neolithic" revolution, "electrical" revolution, "information" revolution, "agrarian" revolution. 

Introduction 

One of the most active parts of the economic system is technology. The perfection of technology has a huge impact on the economy, especially technological revolutions. During the technological revolution, fundamental changes take place in the process of public production. At this time, completely new means of production are emerging in the arena, which lead to the most progressive fusion of elements of the economic system and contribute to the unprecedented increase in human well-being and comfort. However, they are accompanied by the emergence of new negative events or the strengthening of existing ones. The world has already gone through a number of technological revolutions that will continue in the future.

The "industrial revolution" and its several stages are especially distinguished in the economic literature. The next technological revolution is also considered as one of the stages of the industrial revolution. In our view, the Industrial Revolution is one of the most important forms of technological revolution that is being replaced by a qualitatively different technological revolution. Thus, it is logical to express a leapfrog change in technology with the term "technological revolution" and not the first, second and so on. "industrial revolution". The industrial revolution has its beginning and end.

The First Technological Revolution - "Neolithic Revolution" 

At first people lived in groups and used highly primitive tools made of stone, bone, leather, wood and other materials of plant origin. They were busy hunting and collecting plant food. 

The next period, the Neolithic·, is characterized by a new technique of stone processing, man learned to drill, polish, grind the stone to give it the desired, rather subtle shape, which triggered the most important event - the "Neolithic Revolution"·, which is one of the turning points in human history. When man replaces fishery, hunting, and gathering with production (farming, cattle-breeding) and resident life. This process has been quite lengthy and spans millennia. Began: guide of animals; Use of clothes and shoes of animal skins; Acquisition of building techniques for construction of land houses and huts; The use of sledges to move goods, using draught animals; The use of harpoons, rods, nets for fishing, pottery; Mastering the techniques of light, the passage from incisions and torches into primitive oil lamps; Creation of the first forms of jewelry and cults; Extraction of underground raw materials, primarily flint, jasper, shale, and later limestone, excavation of pillars and shafts. Mining was born. As the tool were used: picks, hacks, hammers, shovels, rakes, stakes, retouching techniques brought to the level of real art; agricultural machinery Improved. Used: sickle, flail, mortar; The technology of stone processing was improved by its grinding, drilling and sawing, which made it possible to produce axes, hoes, mortars, hacks from stronger stones - basalt, nefrit and jadiet. The woodworking technique was also improved, the wood was already polished.

In the Neolithic era, the main activities of people were hunting and farming. Animals are domesticated (sheep, goats, pigs, cattle, then horses and camels). In addition to meat and leather (which were also obtained by hunting), domestic animals provided milk and wool. Pets were used to move cargo and pull force.Cattle breading separated from agriculture. To establish slavery began [Дятчин. .., 2000].

The "Neolithic Revolution" was the "first technological revolution" (it can also be called the "agrarian revolution") in the history of mankind. As a result, the “agrarian economy” and “agrarian society” were formed, during which agriculture (mainly agriculture, but also hunting and fishing) played an important role in creating material well-being. 

Prerequisites for Industrial Revolutions 

Each revolution is, first of all, the development of new technologies. Acquisition of new technologies in itself depends on scientific discoveries. In this respect, the 17th century is remarkable. In the 17th century: Classical mechanics was created; the fall of the body, its movement along an inclined plane has been studied; vibrations of strings of a pendulum; measured the speed of sound in air; Coordinate system introduced; foundations of analytical geometry were established; the law of conservation of momentum was created; The concept of the atomic structure of bodies has been developed; the mass obtained by combining atoms was called a molecule; The theory of hydraulics and hydrometry, as well as atmospheric pressure has been developed; The mercury barometer was invented; The laws of oscillation of a physical pendulum, the wave theory of light were created; classical physics was formed; Newton's and Boil-Marriott's laws of gravitation were discovered, and concepts such as mass, density, number of motions, and cell were introduced; Light dispersion, chromatic aberration, diffraction and interference were detected; Corpuscular and wave theories of light, etc., were developed. The microscope and telescope appeared. The foundation was laid for magnetism and electricity. Firearms, gunpowder, compasses and ships that could sail across the ocean were invented, paper production and printing began (XV). Communication and interaction between society, knowledge and technology  increased. Scientific journals, academies, societies were founded (for example, the Royal Society of London (1662), the Paris Academy of Sciences (1666)).

Significant shifts in technology and production have taken place in the wake of scientific discoveries. Industry in England began to develop into the cotton textile industry. Initially, with the increase in demand for fashionable cotton fabrics imported from India, there was a need to expand their production. Inexpensive raw materials obtained from slave labor flowed from the cotton plantations of the American colonies. The processing of these raw materials, in turn, required the mechanization of the production process. Mechanization in manufactories began in 1733, when John Kay created the ""Flying shuttle"", which made it possible to work  machine one person instead of two. In 1765, the English faker James Hargreaves invented the yarn spinning mechanism, later the world-famous "Spinning Jenny", which increased productivity by 20 times. This was followed by the invention of the mechanical knitting machine. By the early 1980s, the first steam-powered textile mills were emerging in England. Manufacturing (manual) production is replaced by mechanized factory production. Machine-building increased the demand for the main energy carrier at that time - coal and, consequently, gave impetus to the development of the mining industry. With the growth of industrial production (textile, mining), the issue of its transportation became topical.

The Industrial Revolution was also preceded by the so-called "Agrarian coup"·, which changed not only the rules of production but also the structure of society, created new social groups suitable for an industrial society in the form of a large mass of entrepreneurs and hired workers. As early as the XVI-XVII centuries, particularly intensively developed so called "fencing" (landowners' possession of peasant community lands), which had already been approved by the relevant acts of parliament (in England) in the eighteenth century, led to the pauperization of the peasants. This mass of peasants left without land and therefore without a source of livelihood was forced to work in industry·.

Until the beginning of the XVIII century, production in the economy was based on the guilds of craftsmen. Manufacturing production was then established, which increased productivity. Mechanization in manufacturing began in 1733, when John Kay created the "Flying shuttle", which doubled productivity. In 1765, James Khargrives assembled the knitting machine“Jenny”. Productivity has increased 20 times·. Therefore, it is believed that the "industrial revolution" begins in the middle of the XVIII century. But, literally the industrial revolution starts a little later. The manufacturing period was a period of mechanization working on water and wind energy. In order to increase efficiency, it was necessary to use new types of energy, which was enabled by advances in science and technology. A whole series of inventions of steam engines began. Metallurgy developed, and this was facilitated by the replacement of wood chips in coals with coal coke to obtain steel (1709). The steam engine was created in 1782, perfected in 1788 by James Watt, which had 5 times more power and was much more convenient and stable than its predecessors. It has been used successfully in various industries and then in transport. The invention of steam locomotives and steamships accelerated trade, boosting economic efficiency. As a result of the "Industrial Revolution", revolutionary transformations begin not only in industry, but in all sectors of the economy and in all spheres of public life. The level of well-being and comfort of the people is growing at an unprecedented rate, working conditions are improving. It was the broadcaster of the "industrial" revolution. Steam mechanization began - the transition from manual labor to machinery, from manufacturing to factories, from agrarian economics to industrial economics. The formation of an industrial society began [История ... 2017].

In the literature, there are different approaches to what caused the industrial revolution, and it was in England, and not in any other country in the world. For example, according to popular belief, the prerequisites for the industrial revolution in England were: large reserves of cheap coal [Pomeranz ..., 2000; Fernihough ..., 2014]; The Slave Trade (Williams ..., 1944); Technological changes (Allen ..., 2009); Institutional shifts (North and Thomas 1973; Acemoglu et al. 2005); Industrial achievements of 16,000 villages (Heldring et al., 2017). Market development from a different perspective and, as a consequence, labor redistribution, innovation and institutional change. [Leander ..., 217].

It is also considered that the British Industrial Revolution was a successful response to the global economy of the seventeenth and eighteenth centuries. In Britain wages were high and capital and energy cheap in comparison to other countries in Europe and Asia. As a result the breakthrough technologies of the industrial revolution – the steam engine, the cotton mill, and the substitution of coal for wood in metal production – were uniquely profi table to invent and use in Britain. The high wage economy of preindustrial Britain also fostered industrial development since more people could afford schooling and apprenticeships. It was only when British engineers made these new technologies more cost-effective during the nineteenth century that the industrial revolution would spread around the world.

In our view all the factors brought here contributed to the industrial revolution in the UK, but the foundations were laid by scientific discoveries and inventions. The industrial revolution was based on great discoveries in science.

A major role in the implementation of the Second Technological Revolution was played by Henry Bessemer's method of turning liquid cast iron into steel, which made steel more durable. The Bessemer method contributed greatly to the development of metallurgy, machine building, and the spread of the railroads.

The most important event in the continuation of the industrial revolution is the invention and introduction of internal combustion engines. This period can be called the period of Motorization. Improving steam engines required large steam boilers and refrigeration equipment that was impossible to operate. Hence the idea of ​​creating an internal combustion engine arose. The first such engine was invented in 1860 by E. Lenoir (1833-900), which was improved by Nikolai Otto (1876) and O. Kostovich, and then Dalmler and Benz. Rudolph Diesel developed a liquid fuel engine (1897). It contained all the elements of a modern engine and was the most economical. In honor of the inventor, it was named a diesel engine. Later, the diesel engine was improved. G. Trinkler created a mixed combustion diesel engine (1889). Unprecedented types of transport were formed: cars, motorcycles, airplanes, helicopters, rockets, spaceships, ships with internal combustion engines, etc. Whole generations of internal combustion engines were developed, on the basis of which transport and related equipment was improved.

The characteristic features of the industrial revolution are: the construction of mechanized factories and plants, which used spinning and weaving machines, turning and milling machines; Agricultural machinery was used; Capitalist relations were established; carried out the migration of the rural population to the cities, etc.

It can generally be said that during the Industrial Revolution revolutionary transformations took place not only in industry but also in any other field of economics. Progressive changes are taking place primarily in industry, but at the same time revolutionary changes are taking place in transport, communications, services, and so on. Hence, the industrial revolution has a common, all-encompassing character for the economy.

The third technological revolution on earth can be called the "electrical revolution" because the use of electricity in production and life was the greatest event in human history. The use of the properties of electricity has revolutionized technology and techniques, which has led to unprecedented development of all sectors of the economy and also unprecedented growth in the well-being and comfort of the population.

Of course, the electrical revolution was also based on the discoveries of scientists. The discovery of the phenomenon of electromagnetic induction by Michael Faraday (1831) was of huge importance for the reception of electricity and its practical use. It is on the basis of this discovery that millions of electric generators, electric motors and transformers are operating today, without which energy as the largest sector of the economy would not exist. Many scientists and inventors have been perfecting the technologies and techniques of transmitting and consuming electricity over the years.

The "electrical" revolution is qualitatively different from the "industrial revolution". The energetic basis of the industrial revolution is steam energy, the possibilities of which are severely limited. It provides only the possibilities of mechanization of manual labor, it is also limited in size. The energetic basis of the "electric" revolution is electricity, which provides the opportunity to change not only human physical labor, but also mental labor.

The advantages of electricity in comparison with other types of energy carriers are: economic efficiency of transmission over long distances; Ease of conversion into other types of energy (thermal, mechanical, light, chemical, etc.); Easy distribution to any number of clients; Electricity with the help of appropriate technology changes not only physical, but also partial mental work of a person. In addition, in technological processes, electricity is not only a source of mechanical and thermal energy, but also directly changes the tool of labor, giving an acceptable product the appropriate shape and properties (electrophysical, electrochemical and other processes).

If it were not for electricity, it would be impossible to create and manage modern equipment and technologies that ensure the current level of production. The use of electricity in completely new processes led to the emergence of new industries and sectors, which led to progressive structural changes in the economy. For example, the property of electricity to regulate the movement of ions served as the basis for the emergence of a new field of technology - industrial electronics. All electronic components and systems of modern technology, radio equipment, computers arose on the basis of this area, which created qualitatively new opportunities for transforming the technical base of the economy. The use of electricity in technological and management processes also causes profound changes in the structure of the economy, which in many areas leads to a transition to fundamentally new technological methods. The economy is gradually becoming more and more dependent on the use of electricity. Its use in high-temperature processes instead of oil, natural gas and coal leads to a decrease in energy and material consumption of production, improved quality, better utilization of production capacity and increased capital growth. All this increases labor productivity and contributes to the further development of the economy. New areas have emerged, such as: the electrical industry, radio electronics, instrument making, the production of electronic calculators, the rocket and space industry, and others. Thanks to electricity, it became possible to use the conveyor in mass production and automate production.

The Fourth Technological Revolution - The "Information" Revolution 

The creation of formation of information society conception is conditioned by the development of complex automatization and computerization, the creation of information industry, data communication networks, national and international data basis. This problem attracted attention in 70-ies of XX (მაგ.: Bell D. 1976; Тоффлер Э. 2010; Masuda Y. 1988)

The creation of first transistor, processor, integral didiagrams microprocessor, computer, ARPANET  (Advanced Research Projects Agency Network) (1969) made it possible to create internet Hrus chan-ging the lives of millions. At the same time are being implemented computers and information technologies Information becomes one of the most important resource. The development of computers and telecommunication networks-enabled its obtain, to keep and transmission near to velocity of light. saientific-technical information, as a bacis for progress is very important. 

High technologies 

At present hi-tech is used in all spheres of human activity. Their use in economy provides special changes altering the tendencies of its development in local as well as in global scale. It determines to a considerable extent the place of national economy in the world economy increasing the competitiveness and standard of well-being of country.

High technologies are more and more new and progressive technologies, the use of which at the present stage accelerates the processes of social, and primarily economic development.

High technologies could become the basis of the next, fifth, technological revolution.

At present electronics and especially its subsector – microelectronics is distinguished among hi-tech branches. The development of electronics has promoted the creation of computer engineering, information measuring systems, integrated schemes, digital integrated circuits, microprocessors, resistors, condencers, diods, transistors, radio, television, robots, computers etc. Without their use, no sector of the economy and no field of human activity would exist at the modern stage, without which the modern level of processing, transmission and use of information would be unthinkable.

High technologies also include the creation of artificial intellect or machines that have the characteristics of a living organism (reasoning, perception, movement, etc.). Today we can talk not only about artificial intellect, but also about "thinking" machines that have "thinking" devices, such as the human brain. This is an artificial brain [1][1].

Biotechnology (which in itself is based on genetics, microbiology, molecule or cell biology, biochemics, embryology etc), computer software, nanotechnologies, robototechnics, telecommunications, aviation-space technologies, photonics, atomic physics are considered as hi-tech branches.

Technological advances today are staggering, many of which were unthinkable even 20 years ago: billions of people are connected to mobile devices, and it does not take even a second to connect them; Access to information and knowledge is unlimited; Artificial intellect, robots, the internet of things, autonomous machines, 3D printing, nanotechnology, biotechnology, quantum computing, energy storage, blockchain technologies, space exploration, etc. are undergoing further development. The world is on the verge of a new, fifth, technological revolution. People and cars are getting closer and closer to each other. there is a kind of unification of the physical, digital and biological worlds.

In our opinion, today in developed countries the "Information Age" is ending and the Age of "thinking technosphere" begins.

At the present stage, information and telecommunication technologies play a major role in the technosphere, and with the "thinking technosphere", the leading role will be played, along with them, the "thinking technology ". The "Thinking technosphere" will have many more possibilities than a single intellectual or thinking machine, Because it will be an ordered unity of such machines around a single "artificial mind (brain)".

In such positions, the condition of people will change significantly. Already in everyday life, they will have to deal with thinking machines with artificial intellect, which will be able to talk about certain topics and make decisions depending on the situation. The forms of organization of production and state administration, and so on, will radically change. We can say that a completely new society with a completely new economic system will be formed.

There will literally be a new, fifth, technological revolution - the revolution of "artificial intellect (brain)".

Conclusions

Often economic processes are studied without technological changes, while technological changes have the greatest impact on the economy, especially technological revolutions.

During the technological revolution, fundamental changes take place in the process of public production. At this time, completely new means of production are emerging in the arena, which lead to the most progressive fusion of elements of the economic system and contribute to the unprecedented increase in human well-being and comfort.

3. In the literature, the "Prominent Revolution" is especially evident and there are stages (first, second, third, etc.), but between these stages there are substantial qualitative differences. Therefore, we read that this step is considered to be a self-sustaining technological revolution. Thus the following technological revolutions emerged on Earth:

1. The first technological revolution - "Neolithic revolution".

2. The second technological revolution - "The Industrial Revolution".

3. The third technological revolution - "Electric Revolution".

4. The fourth technological revolution - "Information (Digital) Revolution".

4. Today we find ourselves on the path of the fifth technological revolution - «revolutions of empirical reason (brain)». The era of the "thinking technosphere" will begin. The line between humans and machines is gradually blurring, although everything is under human control. 

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