TECHNOLOGY AND INDUSTRIALIZATION

Tom Hewitt and Dave Wield

Technology

is an integral part of industrialization and development. But it is not often the prime focus of attention. the subject of technology, and its importance to industrialization, has cropped up regularly but seldom centrally.

Internalization of production means that manufacturers are faced with many choices about what to produce, how and where to produce it, and therefore what technologies to use. Technological changes, including the introduction to microelectronic systems and associated information technologies, have increased flexibility of production. One factory can now produce a wider range of products and services. Technological levels and capabilities vary between different Third World countries, between enterprises in the same country and even within enterprises.

Technological capabilities have been critical in countries, such as Brazil and South Korea, where industrialization has been rapid. Low technological capabilities weaken the bargaining position of most developing countries in acquiring technology from elsewhere. The choice of technologies available to developing countries is limited. So inappropriate technologies are often developed locally or imported

Why is technological capability important for development ? What influences the acquisition of technological capability?

1.

2.
3.

4.

Approaches to Technological Capability Building National Technological Capability Foreign Technology and Technological Capability Education and Training

Technological Capability

the ability to search for available alternatives and to select appropriate technologies the ability to make selective use of technology in producing goods and/or services adaptation of technology to suit specific production conditions the further development of the technology as a result of minor innovations the development of institutionally organized research and development facilities conducting basic research.

Approaches to Technological Capability

Black Box
There

was no need to look into it because all that mattered was what went in and what came out

Neo-liberalism vs Structuralism
by

integration into the world economy, relying on foreign technology, through direct foreign investment and/or licensing by building a local capacity in technology through a process of technological learning.

Alternative Approach

Neo-Liberalism vs Structuralism
Neo-Liberalism Structuralism

Focus of analysis
Role of the state Point of entry
Concept of technology

interactive learning strategic state intervention early stage entry

as acquired

short-run cost
reliance on market forces mature stage entry s a tradable recipe

Innovation process

separateness of links between producer and user production and diffusion of technology

Building National Technological Capability

Stages of Building Technological Capability

Imitation
Modification

Redesign

Major innovation

Making a product identical with an original developed elsewhere. Specifying minor improvements and modifications, for example to fit a product to local conditions. Deciding on changes needed for new markets, or to update models, and then carrying through the manufacturing changes needed to produce the new design. Developing something entirely new, usually requiring some formal R&D.

Foreign Technology & Technological Capability

Foreign Capital Investment Negotiating Technology Transfer Benefits from Restriction

Education & Training

2 Kinds of Learning:
the

acquisition of technological skills and knowledge by individual and, through them, by organizations the acquisition of increased technological capability (or technological learning)

3 Ways of Learning:
learning

by doing learning by using learning from changing

End.