These phenomena – together with a decline in total population, the rapid pace of aging of the population, and the slow pace of structural reforms – have discouraged firms from actively engaging in business fixed investment and innovative activities, have led to households saving more because of growing concerns about the future, and have prompted financial institutions to undertake risk-averse investment strategies.
Also, these technological changes spurred political, social and cultural changes leading to changes in the way of thinking. The European society that once could not tolerate Copernicus and Galileo, began to cultivate a scientific temper and promoted thoughts like free trade with significant implications for growth and welfare. 6.