The introduction of new technology requires more
investments by various firms to adopt the new
technology. This new demand will increase revenues of
the innovating firms. The new technology can also be
used to produce new products. If these products are
successful in the market place, they will generate higher
revenues for the producers. In the long run, the new
technology may be able to augment labor productivity,
which will increase demand for labor and reduce the rate
unemployment. Hence, business revenues will increase,
as those employed workers spend their incomes. Simply,
successful innovations increase profits, investments,
employment, and income.