Technology has advantages such as increased production at lower cost to the company. However, technology is also replacing men in the labor market, leading to unemployment. Every day the world is faced with more research activities and technological development is constantly growing, providing new and more efficient production methods. Over time, technology has become indispensable for some businesses, whose production would be significantly hampered without the technology. This situation allows us to consider technology as an externality in the market. That is to say, the introduction of new machines into a company, with the aim of increasing production, using less time and reducing costs, seems to be the perfect approach to achieve successful development. But why are we talking about externalities? Technological spillovers have more effects than simply increasing production at lower costs. This has collateral effects and that is why we speak of an externality. Some of the most significant consequences of technological progress could be the displacement of manufacturing labor, the creation of widespread unemployment, social disruption, and human hardship. After considering these aspects, technological development no longer seems as practical as before. Having taken into account the above aspects, we can launch a research on technological progress, which has been recently analyzed by many economists. The purpose of this essay is to try to determine the real effect of technology on the market and its consequences in terms of employment, wages, social costs, government intervention and business development. Technology as a positive externality When we talk about technology as a positive externality externality, it means that it actually benefits the middle of paper......nce, can avoid producing so much pollution by developing a certain technology. However, for the company, it is the same whether or not it produces a certain amount of pollution. Thus, with the contract imposed by the government, this condition is established: if the company respects the pollution production standards, not only does it retain the government's approval to continue operating, but it obtains an additional profit given by the State, for compliance with the contract. . - I personally believe that government intervention is remarkably vital in regulating externalities. Unfortunately, companies are not always aware (in the case of pollution) of the damage they cause to the environment and they do nothing to remedy it because economic income does not vary at all. The government must therefore impose incentives to regulate externalities, and control these very delicate aspects..