Effect of Social Income Distribution on Application of New Technologies

Abstract:

Social income distribution and inequality problems have received widespread attention from society and scholars. But very few studies have analyzed how the distribution of social income affects the market penetration process of new technologies or new products. By a dynamic theoretical model and an empirical analysis， it is found that although the large gap between the rich and the poor is conducive to the introduction of new technologies at the beginning， but because the wealth is highly concentrated in the high-income class， the other classes cannot pay the high prices of new technologies， which inhibits the application of new technology or new products. When formulating relevant policies to support new technologies， the government should give some consideration to the current income distribution of the society， so as to maximize the effect of policies.

Key words:social income distribution;gap between the rich and the poor;innovative technology;market penetration