TECHNOLOGY AND INDUSTRIALIZATION

7/27/2019 TECHNOLOGY AND INDUSTRIALIZATION

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TECHNOLOGY ANDINDUSTRIALIZATION

Tom Hewitt and Dave Wield


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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 importanceto industrialization, has cropped up regularly

but seldom centrally.


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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.


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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


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Why is technological capability important for

development ?

What influences the acquisition of

technological capability?


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1. Approaches to Technological Capability

2. Building National Technological Capability

3. Foreign Technology and Technological

Capability

4. Education and Training


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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 aresult of minor innovations

the development of institutionally organized

research and development facilities

conducting basic research.


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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


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Neo-Liberalism vs Structuralism

Neo-Liberalism Structuralism

Focus of analysis interactive

learning

short-run cost

Role of the state strategic stateintervention reliance on marketforces

Point of entry early stage entry mature stage

entry

Concept oftechnology as acquired s a tradable recipe

Innovation

process

links between

producer and user

separateness of

production and

diffusion of

technology


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Building National Technological

Capability

Stages of Building Technological Capability

Imitation Making a product identical with an original

developed elsewhere.

Modification Specifying minor improvements andmodifications, for example to fit a product to

local conditions.

Redesign Deciding on changes needed for new

markets, or to update models, and thencarrying through the manufacturing changes

needed to produce the new design.

Major

innovation

Developing something entirely new, usually

requiring some formal R&D.


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Foreign Technology & Technological

Capability

Foreign Capital Investment

Negotiating Technology Transfer

Benefits from Restriction


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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


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End.

TECHNOLOGY AND INDUSTRIALIZATION

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