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Technology is the application of science to invent technique and its supportive artifacts (machine) to accomplish transformations of objects (materials, information, people) in support of specific objectives (Davis and Taylor, 176, page80). Technology can and often does change the entire way of life, thinking, values, habits, and even the political processes of a nation. Furtherore, it lead to more efficient production techniques will be used when they become available in a free system, especially in todays global economy. Technological advances allow society to produce more output from the existing mix of resources. These advances may take the form of less costly methods of producing existing output or may result in the production of new or substantially improved commodities such as DVD players, HDTV, anti-lock braking systems, and similar innovations. Society clearly gains from the production of either more output or more highly valued output. The automobile is a classic example of a new technology that enormously affected every aspect of life here and in many other countries of the world. Technological innovation is one of the defining features of contemporary industrialized societies (Buchanan and Huczynski, 17, page 6). This means technological innovation embraces all those activities by which technical knowledge is translated into physical reality and becomes use widely enough to have a substantial effect on society. It includes the initiation of the technical idea, the acquisition of the necessary knowledge, its transformation into usable hardware or procedure, and its introduction into society. Not only computing and telecommunications are the most significant innovations seem to be, but also engineering, materials and pharmaceuticals developments are also important. There are two types of innovation, which is product innovation and process innovation. Product innovation is the development of new products, which will have far-reaching effects on business. Process innovation, on the other hand, refers to chanes that take place in the production process. But, how do these technological innovation affect employment? Indeed, technological innovation can have two profound side effects in the labor market, which can bring employment and unemployment effect.
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