Final answer:
A major disadvantage of automation in proprietary technology networks is the exacerbation of the digital divide and added security risks like potential for system failure and loss of privacy. Private markets may underinvest in new technologies due to high costs and uncertain returns, and the impact of new technologies on firm size remains controversial, posing challenges for small and large businesses alike.
Step-by-step explanation:
A major disadvantage of automation regarding its proprietary technology networks is the potential for an increased digital divide. The digital divide refers to the gap between individuals who have access to modern information and communication technology and those who do not, and this gap can occur both locally and globally. With automation, there's a risk of exacerbating this divide as certain populations may lack the means to adapt or compete with rapidly advancing technologies.In addition to the digital divide, automation also brings added security risks such as the loss of privacy, the potential for total system failure, and increased vulnerability due to technological dependence. These risks are particularly concerning in sectors like nuclear power generation, where technological malfunctions could have catastrophic consequences. Private markets may also offer insufficient incentives for new technology development, as the initial costs of research and development can be high with uncertain returns, potentially leading to underinvestment in innovation.There's also a controversy over whether new technologies will lead to larger or smaller firms. While such technologies can enable small businesses to expand their reach beyond local markets, they might also create 'winner-take-all' markets dominated by a few large firms with the power to command a significant market share. This dynamic could influence the structure of industries and competition patterns.