Carl J. Dahlman

Managing technological development : lessons from the newly industrializing countries

This survey looks at the technological development of the newly industrializing countries to draw some important lessons for firms and governments in other developing countries. First, inventing products and processes is not at the center of the technological development needed for successful industrialization. It is at the fringe. What is at the center is acquiring the capabilities needed for efficient production and investment. Second, some countries have overemphasized the drive for technological self-sufficiency and paid a high price in poor productivity. What makes the best economic sense is to combine foreign and local technological elements--and to do this in a way that progressively develops local capabilities in areas where they can be more efficient. Third, the acquisition of technological capability does not come merely from experience, though experience is important. Fourth, the economic environment, through its influence on the technological efforts of firms, is very important in determining the productivity of a countrys resources.

Technology policy for industrialization: An integrative framework and Korea's experience

Abstract First, this article reviews three policy perspectives. (1) The market mechanism perspective includes the demand for and supply of technology and the linkage between the two. (2) The technology flow perspective consists of technology transfer, diffusion and R&D. (3) The dynamic perspective refers to technological trajectory. It then integrates these three perspectives to develop a new three-dimensional framework that may be useful to analyze technology policy for industrialization. Second, this article applies the framework to analyze Koreas technology policy as a case in point. Conclusions are: (1) Technology policies on foreign technology transfer, technology diffusion, and R&D should change over time in response to changing external environment. (2) Technology policies become effective only when three major components policies to promote the demand side of technology, policies to promote the supply side of technology, and policies to provide effective links between demand and supply sides - are well balanced. Finally, it discusses implications for other developing countries.

India and the Knowledge Economy : Leveraging Strengths and Opportunities

In the global knowledge economy of the twenty-first century, Indias development policy challenges will require it to use knowledge more effectively to raise the productivity of agriculture, industry, and services and reduce poverty. India has made tremendous strides in its economic and social development in the past two decades. Its impressive growth in recent years-8.2 percent in 2003-can be attributed to the far-reaching reforms embarked on in 1991 and to opening the economy to global competition. In addition, India can count on a number of strengths as it strives to transform itself into a knowledge-based economy-availability of skilled human capital, a democratic system, widespread use of English, macroeconomic stability, a dynamic private sector, institutions of a free market economy; a local market that is one of the largest in the world; a well-developed financial sector; and a broad and diversified science and technology infrastructure, and global niches in IT.

Knowledge and Development: A Cross-Section Approach

This paper assesses the effects of knowledge on economic growth. By using an array of indicators, each of which represents an aspect of knowledge, as independent variables in cross-section regressions that span 92 countries for the period 1960 to 2000, the paper shows that knowledge is a significant determinant of long-term economic growth. In particular, we find that the stock of human capital, the level of domestic innovation and technological adaptation, and the level of information and communications technologies (ICT) infrastructure all exert statistically significant positive effects on long-term economic growth. More specifically with regard to the growth effects of the human capital stock, we find that an increase of 20 percent in the average years of schooling of a population tends to increase the average annual economic growth by 0.15 percentage point. In terms of innovation, we find that a 20 percent increase in the annual number of USPTO patents granted is associated with an increase of 3.8 percentage points in annual economic growth. Lastly, when the ICT infrastructure, measured by the number of phones per 1,000 persons, is increased by 20 percent, we find that annual economic growth tends to increase by 0.11 percentage point.

Performance and potential of information technology: An international perspective

Abstract Rising information content of economic activity worldwide is making the use of information technology (IT) increasingly relevant in a broad range of countries and activities. Effective planning and organizational capabilities are essential to successful adoption of the new technologies; authors in this issue have concluded that “managerial skills and entrepreneurship” are key to effective use of IT. In addition to human capital development, IT diffusion requires a strategy for generating large investments in telecommunications. While proactive measures at accelerating the diffusion of IT have their place, they need to be complemented by reduction of barriers to the international flow of services and investment.

The Meaning of Technological Mastery in Relation to Transfer of Technology

The acquisition of technological mastery—that is, of the ability to make effective use of technological knowledge—is critical to the achievement of self-sustaining development. Transfers of technology are substitutes for local mastery rather than sources of it. Consequently, the part played by transfers of technology in the process of development, while important, is nonetheless limited. This article considers the role of technology transfer with specific reference to industrial technology, and places it in the broader context of the relationship between the acquisition of technological mastery and the development of an efficiently functioning economy. Based on a review of what is known about technical change in industrial enterprises in less-developed economies and on a case study of one economys experience, it demonstrates that indigenous effort to assimilate technological knowledge is of overriding importance in the achievement of technological mastery. Various types of technological mastery are distinguished together with the different categories of effort associated with their acquisition. The consequences of increased mastery are also discussed, together with the factors that determine when it is appropriate to rely on transfers. Finally, the authors suggest that further research is needed to determine how technological mastery ought to evolve in relation to industrial development.

Knowledge and innovation for competitiveness in Brazil

Brazil has made considerable progress toward macroeconomic stability since reform measures began to take hold in the early 1990s, and its economy has produced stronger growth as a result an average of 2.5 percent annually over the past decade. This study provides a broad, cross-sectoral analysis of Brazils capacity for producing knowledge and innovation. As such, it moves beyond the traditional recommendation that is, builds a stable macroeconomic environment and business-friendly physical and policy infrastructure and instead seeks a more comprehensive approach. The fact is that Brazil has delivered some important successes with efforts to develop innovation in agriculture, aerospace and energy. But like other middle-income nations, it is discovering that it must re-evaluate its education system, its information technology infrastructure, and its policy framework for encouraging innovation to ensure that its economy as a whole is growing fast enough to keep up with the global competition while also guaranteeing progress in its fight against poverty. This study was developed in close consultation with Brazilian government and civil society leaders, who are deeply engaged with the question of how to foster innovation and greater economic competitiveness. Indeed, the breadth of the support for this study is a testament to Brazils pragmatism and perseverance in pursuing more robust growth. It is also a welcome reflection of its continually evolving relationship with the World Bank. Today, Brazil has emerged as a leader of efforts to build South-South cooperation. In this role, it can set an important example for other middle-income nations and act as a bridge between the northern and southern hemispheres.

Enhancing China's competitiveness through lifelong learning

This study emphasizes that in response to demands for wider access and better quality of education, and to achieve economies of scale and leverage limited resources, China needs to develop a more integrated system of education and training with appropriate bridges and interfaces among its various constituents. This book outlines the key elements of such a system, focusing primarily on its economic aspects. It presents a framework to help identify and understand the demands being placed on the education and training system and the services that various education providers can supply, highlighting several policy approaches to building an effective and efficient lifelong learning system. These include changing the role of government from being the main provider of education and training to being the architect, facilitator, and rule-keeper for a more inclusive system. In this scenario, government would ensure quality, relevance, efficiency, and equity through sound accreditation, assessment, and vocational qualification systems, stronger linkages with the labor market, partnerships with nongovernmental players, and better resource allocation and financial aid programs. It would also provide information services for all stake-holders, develop an education finance market, tap into private resources to meet the increasing demand for education and training, and harness the potential of distance education.

Exports of technology from semi-industrial economies and local technological development

Abstract This paper analyzes technology exports from five of the most industrially advanced developing countries — Argentina, Brazil, India, Korea, and Mexico. It explores the nature of the exports and of the exporting firms, identifies the competitive advantage underlying different types of technology exports, and analyzes the comparative advantages of the five countries in these exports. Based on an analysis of different strategies toward the trade in the elements of technology, it summarizes tentative lessons about relationships between trade in the elements of technology, country and firm strategy, and local technological development.

Inclusive Innovation: Harnessing Creativity to Enhance the Economic Opportunities and Welfare of the Poor

In recent decades, technological innovation has led to increased productivity, higher economic growth, and vastly improved living conditions around the globe, lifting millions out of poverty. Yet, access to the fruits of this rapid development has been uneven, with a large share of the world’s population not benefiting from these advances. Nearly 2.5 billion people live on less than US