@fansy,
Second, as new concepts are developed, new terms are needed to describe them, so instead of creating new words, we simply put together already existing words, which acquire a new sense in combination.
I fixed it up there for you, Boss. The locution "are needed for their indication" was god-awful lame, and not something a native speaker would have written. If you're set on using the verb to indicate, then write: ". . . new terms are needed to indicate them . . ."