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Understanding Technology Development

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  • Sanjaya Lall

Abstract

There are wide variations between the developing countries in the capabilities of their enterprises to import, utilize and improve upon industrial technologies. It is important for the purposes of industrial policy to understand why these differences exist and how industrial capabilities may be improved. This article presents the findings of recent research into the nature of capability development and the role of government policies in promoting such development. The process of becoming efficient in industry is very different from the usual textbook portrayal, in which firms costlessly access and absorb new technologies. In reality, there is a long and uncertain learning process involved, differing with the nature of the technology, the efficiency of factor and product markets, and the provision of various technological information and services from the infrastructure institutions. There is a widespread risk in developing countries that all these markets suffer from failures: the scope for technology development policies rests on the need to remedy these failures. The experience of the most successful newly industrializing economies (NIEs) suggests that well‐designed interventions, both selective and functional, are needed to promote technology development. Experience clearly shows the dangers of government failure, but it is necessary to retain a large role for the government if industry is to succeed. The pattern and implementation of interventions have to be very different. This article points out the outlines of economically desirable interventions.

Suggested Citation

  • Sanjaya Lall, 1993. "Understanding Technology Development," Development and Change, International Institute of Social Studies, vol. 24(4), pages 719-753, October.
  • Handle: RePEc:bla:devchg:v:24:y:1993:i:4:p:719-753
    DOI: 10.1111/j.1467-7660.1993.tb00502.x
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    3. Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2008. "Global Value Chains and Technological Capabilities: A Framework to Study Learning and Innovation in Developing Countries," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 39-58.
    4. C. Pietrobelli, 1994. "Trade liberalisation and industrial response: the case of Chile (1974-1987)," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 47(191), pages 431-468.
    5. Carla Berke & Harald Trabold, 1995. ""Low-cost" oder "High-tech"?: Strategische Außenwirtschaftsoptionen für die mittel- und osteuropäischen Länder," Discussion Papers of DIW Berlin 124, DIW Berlin, German Institute for Economic Research.
    6. Amin U. Sarkar, 1997. "Sustainable development and technology," Environment Systems and Decisions, Springer, vol. 17(2), pages 97-102, June.
    7. Bodas Freitas, Isabel Maria & Marques, Rosane Argou & Silva, Evando Mirra de Paula e, 2013. "University–industry collaboration and innovation in emergent and mature industries in new industrialized countries," Research Policy, Elsevier, vol. 42(2), pages 443-453.
    8. Simon Pek & Chang Hoon Oh & Jorge Rivera, 2018. "MNC foreign investment and industrial disasters: The moderating role of technological, safety management, and philanthropic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 502-526, February.
    9. Munir Ahmad & Azkar Ahmad, 1998. "An Analysis of the Sources of Wheat Output Growth in the Barani Area of the Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(3), pages 231-249.
    10. Peter J. Buckley & Roger Strange & Marcel P. Timmer & Gaaitzen J. de Vries, 2020. "Catching-up in the global factory: Analysis and policy implications," Journal of International Business Policy, Palgrave Macmillan, vol. 3(2), pages 79-106, June.
    11. Mohan Babu, G.N., 1999. "The Determinants of Firm-level Technological Performances - A Study on the Indian Capital Goods Sector," UNU-INTECH Discussion Paper Series 1999-01, United Nations University - INTECH.
    12. Munir Ahmad, 2001. "Agricultural Productivity Growth Differential in Punjab, Pakistan: A District-level Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(1), pages 1-25.
    13. Bangens, Lennart & Araujo, Luis, 2002. "The structures and processes of learning. A case study," Journal of Business Research, Elsevier, vol. 55(7), pages 571-581, July.
    14. Thee Kian Wie, 2010. "Technology and Indonesia’s Industrial Competitiveness," Working Papers id:3295, eSocialSciences.
    15. Chen, Victor Zitian & Li, Jing & Shapiro, Daniel M., 2012. "International reverse spillover effects on parent firms: Evidences from emerging-market MNEs in developed markets," European Management Journal, Elsevier, vol. 30(3), pages 204-218.
    16. Usman Qadir (ed.), 2024. "Wheels Of Change: Tracing Pakistans Automotive Evolution Through Political Economy And Technology Acquisition," PIDE Books, Pakistan Institute of Development Economics, number 2024:08.
    17. Sonali Deraniyagala, 2000. "The Impact of Technology Accumulation on Technical Efficiency: an Analysis of the Sri Lankan Clothing and Agricultural Machinery Industries," Working Papers 103, Department of Economics, SOAS University of London, UK.
    18. Sanjaya Lall, 2001. "National strategies for technology adoption in the industrial sector: Lessons of recent experience in the developing regions," Human Development Occasional Papers (1992-2007) HDOCPA-2001-08, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    19. Sonali Deraniyagala, 2001. "Adaptive technology strategies and technical efficiency: Evidence from the Sri Lankan agricultural machinery industry," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(1), pages 59-71.
    20. Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2006. "Global Value Chains and Technological Capabilities: A Framework to Study Industrial Innovation in Developing Countries," KITeS Working Papers 192, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Dec 2006.

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