Effect of Country Development on Technology

Effect of Country Development on applied scienceIntroductionTechnology is go more and more very main(prenominal) to the victory of all argument firms, and to the national economic evolution. The emergence of globalization is determined by applied science organic evolution and the ability of corporations to uplift the use of engineering effectively and rapidly. The technical spread betwixt demonstr adequate to(p) countries and emerging nations has change but still dust huge. The first step to narrowing the gap is for emerging nations to absorb engineering successfully. The rapid economic increment attaind by the nakedly industrialized economies has generated a vast amount of research on the mechanism behind the economic take off. According to F. Montes-Negret (2008), progress in annex countries reflects the dousing of pre actual technologies non at the frontier inventions. In general terms, catch up refers to the ability of a sphere to rationalize the gap in overlapivity and income with respect to the leading international countries (Fagerberg-Godinho,2005).Perez (1988) views maculation up as a question of relative speed in a race on a fixed track, according to him, engineering is unders to a faultd to be a unidirectional process. Furthermore, he observes that every plain is a beginner in terms of the b be-assly emerging techno-economic paradigm, which implies the incident of being a latecomer. Research has shown that in the catching-up process, the late-comer does not simply find the path of a scientific victimization of the advanced(a) countries. Instead, they would rather bolt some(a) stages or even create their own individual slipway which atomic number 18 different from the true countries. By doing this, it may result in the growing countries becoming latecomers in applied science advancing.For the state to meet process in economy and industrial maturation, it guides to go through an absorptive energy and a bility to tap in the humankindity races technology pool. Cohen and Levinthal (2000) explains absorptive capacity as the ability to assess the value of external knowledge and technology and to curb infallible giftments and changes to absorb and apply these changes in a productive manner. The teaching of impertinently-to-the world knowledge stooge be considered to be innovative which finish be a costly molding activity that a country can take in order to catch up with others done technology absorption. figure and technology absorption are two evident processes, that is, innovation promotes absorptive capacity because the generation of human hood and refreshed ideas, and the associated knowledge spillover effects, help build absorptive capacity. RD is a severalize comment into innovation and is also an input into absorption capacity.Absorption of technology is considered a necessary step to promote the development of human capital and the productive base, paving the way for innovations at the global knowledge frontier. Research and development (RD), patents, trade, and international direct enthronisation are major bring of scientific absorption, allowing diffusion of new ideas and manufacturing best practices among countries and firms. R D is a line input into innovation and is considered to be a very important key in the absorption of technology (Cohen and Levinthal). Rogers (2003) defines examples of technology absorption as the word sense of new product and manufacturing processes positive in other countries upgrading of an old product or process, licensing technology, improving organizational efficiency and achieving quality certification.This paper forget discuss how properly designed economic policies can significantly stoop the degree to which a country absorbs new technology, that is, it will discuss the pre requisites for technology catch ups. The motive for a st qualified and tributary policy framework and a business-frien dly investment climate is what cods the countrys ability to absorb technology and knowledge, and this depends on its organization and the skills of its workforce. Further more the paper will discuss the channels that ontogenesis countries can use to catch up with other developed countries through technology absorption much(prenominal) as trade flows, abroad direct investment (FDI), RD and patents.Literature ReviewThe very rich literature on catch-up through technology is full of countries that in the past decades keep managed catch up with the developed countries, others that commence succeeded ahead and several that give up fallen behind in technology and failed to be par with the developed world (Abramovitz, 1986). More research has identified a series of factors that have affected the sources of catch-up. One of the elements is regard to the presence of learning and capabilities in the internal firms (Bell and Pavitt, 1993, Kim, 1997 1999, Lall, 2001, Kim and Nelson, 2000 , Lee, 2005). Catch-up countries should try to adopt the Schumpeterian view of the process of innovation, according to which economic agents are likely to innovate as a reaction to unexpected changes deep down the economic environment (Schumpeter, 1947). From the early traditional literature that emphasized how it was contingent to close the gap though transfer of technology and the imitation of well forthcoming technology, the literature on competences has forcefully escaped to show the ab true theatrical role of the process of might accumulation by house servant firms and the need of various types of capabilities for catch up absorptive capabilities, innovation capabilities and complementary as performs in order to adopt, adapt and modify technologies developed elsewhere or lastly generate new ones.Actually, the closely current research has shown that any process of development and proceeds implies some kind of innovation, and that sequences of steps in the capability bu ilding process are necessary for development. The literature has also express the role of social capabilities (Abramovitz 1986) and the broad institutions of a country, including the research infrastructure (Mazzoleni and Nelson,2006) and fiscal institutions (Gerschenkron, 1962). In the catching up in income per capita or productivity open policy has often played a major role in different ways and take a shits in several countries such as japan (Johnson,1982), Korea (Kim 1997), Taiwan (Wade, 1990) and Brazil (Mani, 2004). Also the upgrading of the level of human capital has proven a key element for catching up (Fagerberg and Godinho,2004 and Bernardes and Albuquerque, 2003).The literature go on shows how technology in growth is the missing affaire between the developed and the less developed countries. There is a possibility of a catch-up scenario in the event that less developed countries are able to access and employ developed technology. In other words, less developed co untries would grow at a higher rate until at such time that the differences between developed and less developed countries are negligible. This can be shown by the experience of East Asian countries ( manhood Bank, 1993).Catching up is usually sour to be dependent on the level of human capital and knowledge. superior is a necessary shit for the economic success in the world today, because the countires need the capacity to mobilize knowledge and to use it to the fullest. A sight by the World bank (2009) indicates that countries in the Sub Sahara of Africa (SSA) must(prenominal) find both more capital and more knowledge. These African countries needs to invest heavily in physical infrastructure and productive capacity. However, maximizing productivity and achieving matchedness will depend upon success in augmenting human capital and raising its quality. This has been shown by Namibia as it was ranked the second and fifth on an individual basis in terms of scientific sophisti cation and prevalence of foreign technology licensing in the competitiveness report. However, firm level absorption of this technology remains low as the country was ranked 15th. From this case we can learn that the use of technology requires skilled labor force. As earlier pointed out, investment in human capital remains a critical military issue for Namibia and other developing countries. The use of technology requires supporting infrastructure such as good telecommunication and energy in foundericular. (?)Nations such as Australia, Chile, Malaysia, and Spain have responded by developing cross-sectoral policy frameworks to promote science, technology, and innovation. Within sub-Saharan Africa, Mozambique, Rwanda, and South Africa have led the way with similar cross-cutting strategies. Other SSA countries that have produced national science and technology policies since 2000 include Ethiopia, Ghana, Lesotho, Malawi, Senegal, Tanzania, Uganda, Zambia, and Zimbabwe (Mouton 2008). B etter education brass can assist the developing countries in ..Pre Requisites for technology catch upTechnology absorption is often regarded as a pre requisite for gaolbreak up a high cost economy and creating an economic competitive market internationally. The initial gap for countries which are trying to catch up with technology should not be too wide for them to be able to absorb knowledge from scientific leaders. Moreover, late comers must have, or create, sufficient absorption capabilities. In this context, sufficient absorption capabilities are described as having qualified researchers who are able to get wind external knowledge spillovers and love their value in operation. Developing countries need a strong human capital base that will be able to understand the new innovative systems that have been put in post by the advanced countries, hence they need well developed scientific, engineering and technical skills. Cohen and Levinthal (1990 pg .129) point that accumulate d knowledge increases both the ability to put new ideas into practice. If the rake of knowledge is increased, in general, additional learning will be facilitated. The growth of knowledge adds value to the countrys ability to adapt to new ideas olibanum becoming fast in catching up with technology. technological progress depends on more than being exposed to foreign technologies. How fast it spreads in spite of appearance a country is at least as important and depends on the domestic technological absorptive capacity, the quality of technological literacy of the cosmos and the quality of the business climate. Although major centers and leading firms may be relatively advanced, the rural population and the majority of firms do not exploit the best technologies, often because the necessary infrastructure and human competencies are not available. This may lead to some lags in technology catch up for developing countries.Nelson and Rosenberg (2003) explains the importance of the lin k between science and technology as this is one of the important tools for technology catch up. The technological progress requires the mobilisation, co-ordination and integration of many different types of knowledge, and thus involves different types of knowledge producing organizations like firms, research institutes, and universities. Research organizations should be able to communicate to each other about technology innovations that are occurring inwardly their countries. This will enhance knowledge diffusion. With respect to the co-ordination and integration of knowledge crossways the research sector, communication or even interaction is needed. This can be accomplished by co-operation, strategical alliances, clusters, and networks, all of which install channels along which knowledge can be communicated. If communication exists indoors countries, the developing countries may be able to learn this as a good tool for success in technology absorption. Knowledge is no longer th e disciplinal monopoly of a few institutions of higher learning rather, it is becoming the product of problem-solving endeavors conducted within a shifting network of often informal professional interactions (Gibbons and others 1994 Gibbons 1998).The technological progress in developing countries is mainly a process of adopting and adapting to pre-existing technologies, hence developing countries perform relatively undersize when it comes to research. For the developing countries, technological progress mainly occurs through the adoption and adaptation of already existing technologies. The rapid increase in technological achievement owes much too increased linkages between developing and developed countries. Globalization in the form of imports of advanced products, and the transfer of business process technology through foreign investment and increased linkages with emigrant populations have increased the exposure of developing countries to more sophisticated technologies.Technol ogy absorption needs stable and conducive policy framework hence policy makers should ensure that openness is maintained, they need to concentrate on strengthening domestic competencies, promoting the dissemination of technology and reinforcing the topical anesthetic business environment in order to avoid the constrain on technological progress in developing countries.Patents as indicators of Technology absorptionSUMMARYCatching up does not necessarily need to be viewed in a linear and unidirectional way. As long as technology is understood as a cumulative unidirectional process, development will be seen as a race along a fixed track, where catching up will be merely a question of relative speed. Speed is no doubt a relevant aspect, but history is full of examples of how successful overtaking has been primarily base on running in a new direction.xiv Indeed, in new fields such as biotechnology, the developing countries are making efforts to move to the scientific frontiers but they plan to apply the acquired knowledge in developing products that are more relevant to local needs.The larger the technological and, because, the productivity gap between the leader and the follower, the stronger the followers authorisation for growth in productivity and, other things being equal, the faster one expects the followers growth rate to be. Followers tend to catch up faster if they are initially backward.xv The explanation for this paradoxical suggestion has to do with the level of technology embodied in a countrys capital stock.Developing countries with the relevant human capital base are always presented with new windows of opportunity for ingress new technological systems. But doing so requires other skills such as the capacity to monitor international trends, formulate long-term strategies and determine the locational as well as infrastructure advantages of the country. Most African countries, for example, do not have the capacity or the requisite institutional ar rangements for monitoring technological advantages. Planning efforts are usually of a short-term nature and therefore unable to accommodate technological requirements for long-term growth. In more recent years, most countries have been forced to adopt short-term planning strategies to modify them to implement macro-economic stabilisation programmes. However, the challenge now is to put in place longterm structural adjustment programmes which are based on industrial transformation.Technological catch-up may also involve the use of advanced technologies to deliver new products and services that do not necessarily compete with those developed in the industrialised countries. Many of the products of biotechnology, for example, may be relevant to certain locales and of little interest to the major firms. Their technological requirements, however, may be just as high as those for the products of the leading firms. The paper has shown that there are terce points of entry into the game o f technological competition. The first relates to the accumulation of basic technological competence in society. This is related to human capital formation. A country without the requisite technical competence is unlikely to make sustained advances in technological development. The second issue is the ability of a country to make an early entry into a particular technological system. This step can only be achieved where the first one has been accomplished. The last issue is the potential for a country to occupy particular technological niches as part of a strategy for industrial learning. With the widening range of technological trajectories and systems, the opportunities for the developing adopting any of the three strategies or combinations thereof are relatively high.To achieve improvement of production technology, i.e. technological progress, on a large scale, relatively more scientists and engineers must be engaged in research right off integrated in production of goods and se rvices as opposed to the university and public research sector. Notwithstanding that universities and public research institutes play an important role in developing new products and processes, the majority of research is done by firms (Nelson and Rosenberg (1993)). For new products or processes developed by universities or research and development (RD) institutes, both domestic and foreign, to be implemented in firms roduction processes, the innovation must be adapted to firms specific organizational structure and production processes. This implies that firms understand the innovation and are able to revise it. Firms will have to do research themselves (Cohen and Levinthal (1989)) and might even have to repeat parts of the original research process, since they have only partial knowledge about the innovation. This has important implications for the organisation of RD personnel they should be employed in production as well. More RD personnel in production of goods and services will increase the possibilities for absorption and diffusion in this sector.because a weakening economic carrying into action that threatens a return to the economic conditions of the 1990s would be a abundant human tragedy. But maintaining the current momentum, and accelerating growth wherever possible, requires measures that will considerably enhance economic competitiveness and nurture expansion of new tradable activities. To ca-ca these objectives, The key to economic success in a globalized world lies increasingly in how effectively a country can assimilate the available knowledge and build comparative advantage in selected areas with good growth prospects, and in how it can enlarge the comparative advantage by thrust the frontiers of technology through innovation. The global knowledge economy has drawn solicitude to the value of national innovation systems in the competition among nations (Nelson 1993 Porter 1990 Stern, Porter, and Furman 2000 Thurow 1999 World Bank 1999). In stitutions that generate skills and knowledge, such as universities and research institutes, are immanent components of a national innovation system (NIS). In essence, an NIS is a melding of institutional capacities, coordination mechanisms, communication networks, and policy incentives that fosters innovation-led gains in economic productivity. In this web of institutional relationships, innovation can arise at any point.During the past decade, most African countries have pursued national economic growth strategies within the framework of Poverty Reduction Strategy Papers (PRSPs). Until recently, many PRSPs have been oriented toward attainment of the Millennium Development Goals, an internationally accepted set of performance targets spanning poverty alleviation, agriculture, and access to basic services. Concern with explicit growth promotion efforts as the means for sustainable poverty reduction is a relatively recentbut readily acceptedshift of strategic approach (Commission fo r Africa 2005).BibliographyNelson, R. and E. Phelps (1966), Investment in humans, technology diffusion and economic growth, American economical Review 56, 1/2, 69-75.Harding, T. and J. 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