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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.