“conponsne Eenanic Orpsnton: The Amis of Der Srceural ‘Sit Que. 36 Gute, 209-256. “Cavan, Tr, a Eesti Orsini, Joel of La a “Te Bavng Sec Orsi Jarual fein nd Ths se, 36-83 7, Review Boas The New Inirional Senaoic,’ Ani Jao Sis, 98 oi-708, = zi rin - Technological Accumulation and Industrial Growth: Contrasts Between Developed and Developing Countries Matin Bett and Kurt Pavirt (Science Policy Research Uni, Univewsiey of Sussex, Brighton BN1 ORF, UK) 1. Introduction Several areas of economic analysis have given renewed attention during the ive to earlier expect ;, disappointment ac ng op ovr he fas four five decades perhaps was widely ecogniald chat there ural technologies from developed to © 040 wri re)Tecbnolegical Accumulation and Indhatvial Growth ¢ advantage has depended on both ev 1nd particular parterns of cechnolog:ae needed about in both develope ‘Technological Accrovlation and bi 1 Growth logy and the longe ies of industrial groweh, iad developing counties. 2. The Framework for Analysis Grenths ‘technology adoption’ ot portance has been emphasized, for example, ly draws on a rangeTechnlegical Accumulation and Industrial Growth techeology. Tn the industrialized economi } I diffusion can be realized, land know-how for oe standards, or for produ ems snd econggpies. Technol zefers to any process By wh € resources for generat‘Technological Accennlarion and Industrial Grows ‘ tution of continuing ences new yy inte existing production faci ries—through the types of i cechnical change discussed above. yh‘Todbmological Accunataion and Industrial Growth Technological Accumulation aud Indusrial Growth ~ Cleoelos| - car giver dor appraseneit coreeven ae i‘ ealiiory G2 in utte) and design functions were sep (Hanson and Pavitt, 1987). AS we » % human capital in economic grow!‘Terbootegical Accumuletion ty of technology imports and local technological Technology acquited from ocher countries has been essen- ‘# Imported rechoology can conttibute dizectly 10 ‘out there being eny signi capabiliies. More often, bination of technology oe j ‘and knowledge can be acquired wesements in learning——by doing or 170 imports, chese may be compl by intensive effores to accumulate‘Tecbeoogical Accumulation and Indastriel Growth lop new elements of cechnology. bbe importane mechanisms for eanst new technology. pressure nd svy an \Q egicng i Ra trams oft gas ke not just to technical change. impores are acquited through educstional and informal ining of design en persistence of protection seems t0 have been an apparent necessity for 173 of process specifications is accompanied by m2‘Technalogicl Accumulation ond Industrial Grevth (e.g. in the case of developing effective mas technology im ‘che Japanese aucomobile indus Governments and market in magkee economi the environment. Other areas of government lf new knowledge through research ‘education and, ‘education and czaining.. However Tdeatifed among the developed councres, and differ~ Is of the ewo- e Anglo ‘and product quality (see, e.8- Pruisy ‘Tecnologia Actumelation and Indutrial Growh lop academi jing—have made important contribu- inputs of knowledge and inf icy intervention and technological nificance of academic research. ‘The heavy hand of spot ingo most analyses of the jeal development. First, manyTechnological Accemalation and Industrial Growth Technological Accumulation and ladnstrial Grow —— ‘which not only reduced marke investment in theie technological capabilt vvestment in new production capacity. incremental improve- 1g. from the laser in the Jn the 1980s). Second (and using the same co evaluate accurately che pocential value snd beyond the comprehension on act ag substiures, to generate techaical change. Tht poorly understood, several studies have found chat UK (Moria, Kova. 1992), and Amsden (1989) assercs chat ¢ uations and management. ‘There have been persist 4, Inter-Sectoral Differences and Trajectories in the Industrialized Countries ‘Our discussion so far has described aspects of the experience of the advanced ‘countries tha celace co cechnological accumulation in the indust- sector in general. However, parteras and paths of technology accurnula- tend to differ becween firms and industries. These differences raise two 177 = and management. “Thus, there is now a body of opinion arguing thac the German and Japanese systems for financing business activities, with ther strong emphs‘Tednologcal Acwmalation and Industrial Growth Ctoss-Sectional Contrasts wguishes beeween a number of and technological accumu ing by major companies over recent decides (for ‘more detail see Pavitt, 198: Malet, 1992). Each of the categ is reflected in a model of tec change found ia economic ive method of technological accurmula- In sapplier-dominated fr, xy and other production inputs. most new techniques originate in fi vdustries, Technical choices refece for technological accumulation are focused iffeationt in production methods and product design, Most cechnology tenive firms, technological accumulation is generated by the of complex production systems andlor prod- tues Typical core sectoes include the extraction and procesing of bul certain consumer dorb erefore develop incrementally on the ee operating experience, and improvements in components, machinery and sub-systems. The main sources of vechn production engineering, operating experience, and suy and components, Technology accumula build components, machinery and sub- “Tecbnalgical Acciomlation and Industrial Growth 1d large-scale, complex 5) rational cechaology ensing of production and design know-how and to trade in machinery and other inputs. This reflecced in Schmooklers (1966) analysis of iL change. frm, we see the emergence of a major new form of fe firms comprises the ng, operation and improvement of complex syscems for the 0 be experience In science-based firms, cechnological accumulation emerges mainly from corgorate RAD laboratories, and iz heavily dependent on Knowledge, skills tnd eechniques emerging from acade gical accumulation in the firm are new and technologically related product markets. International rechnology transfer requires more than the purchase of production inputs and the licensing of production know-how. Ic also req ‘engineering (i.e. analysing and copying which itself requizes aca trained eesearch scientists and technical change is best exe and analysed in the ‘Specialised supplier res pr ystems of production in the form of machinery, compore software, Techaological accumulacion takes place through che ing and operacional use of these production inputs. Spec operating experience of advanced us ind the identification of possible modi - ier firms accumulate the skills co match advances i set cequirements, which—~given che complexity and ‘machine design wi 179“Taste 1. A Technology-Based Clsicaion of Busnes Fies Gunes Gheony of Few Hy Seale Information ‘Science ‘Speialiaed & saa Tone fend ie cae eT a a = q fete Gene tee ris ‘nen 3 moe a fad ae i econ i : Chil engnesting 5 8 Sino fm Sul tasse Tae bee Seat i Typectunt Bee ise ive Ded Permace = Sse mame Eee! Main focus of Con Mixed Mined Mixed Product is iclogiel —laton Inpoement = ake 9 Mein sources ‘Sptien Pradcton Carat ‘capone Daige 6 g Yeietegat — Pilicion Sg Sam's RED aan & Smuiniee ese Frolecten Sror'ng. Ba Stel tee terns Peirce ich fo pea serait see alain oe ea cose See ee ee ee eee Main decton Prost Pres Tetnaogy dc fecha Tekcloer& dclgy & ed etme come Shel en eee Saree gee mere tpn pens intra (mary ____(enenis Nain dames Pace of Paras of Puchacof_—‘ Reet — : ocaee Supecn& eypmene Cepmece —caeeniag cing x Sect ad pant ane Aen fog : contr seis Tena Reve ee foe & Sica Cilia Mo : chee reeled & > Revere sate 2 Soot : rn SRE Serer ee epeeeeege Doge Peas ees } cee” iced a Bate eee we, ene Ea L aoe Th = & Min senapie Uns ecinly—Trena Dales ad Delon onior £ Mimcenct, peed”. Incanto eget fee smc : oe Sacre" wctindonlgy Stoel rede ‘or nnd x fanbeceter comple fea ensaeee IRE spencers oesetoe eet eee eee enema 2 ; stem mprvenent Oba rome & fe tere: ea ae apt proces PRN sowing sso aie sane esis Soutce: Band on Poi, 1984,Tehmolgical Accraalation and Industrial Growth developed countries, where in science-based and scale technological accumulation che bases of councries' comy ‘The Dynamics of Competicive Advancage and Stcuctural Chenge ‘These sectoral pascerns of technological change begin co help us explain ehe lacgely on the basis of factor endowments, Low-W theit comparative advantage in such supplier-dominated sectors, pr ing eechaology. At the other extreme, ess dominated by echnological ie and specialized supplier panive advantage leads and lags Tecrnological Accumulation and Industrial Grows fo adopt and develop process ies of increasing complexicy. Changing bases of inter- national competitiveness evolved aloag with, and increasingly as a result of, these technological «raject ‘Thus, each type of se {erent locus of technologi- and product improvements (production engineering, design) in ensive firms; «# exploitation of basic researc for product and associated process develop (RAD) in science-based firms ‘Overtime, chese learning processes within given secrors have aid che basis for local production in other sectori—for example by the vertical disintegra- tion of production ially developed in one cates the eansfer of accumulated knowledge and exper tiveness of other eypes of i‘Techwelogical Accumulation and inductriel Growth Such trajectories have not been pre-ordai in most cases thee laive-xaser of core sechnole ving howls bases, Fee ative rgnificance ofthese mechani bas changed during the process von, Inthe ely stage, che ccecions of technical change in inducement ulation of specific technological skills itself became a focusing device for technical change. Factor endowments. The most obvious of the focal inducement mechanisms has been the search t0 al historical importance in che development USA (and elsewhere in the developed world) is imporzance in generating techni ses 0 dif development paths of aucom United States, on the one Space-saving technological said to have been important in che evelopment of early post-war improvements in Japanese methods of mass production. Eavironmenc-saving inducement mechanisens may become more imporeane in future. jurope and Ease Asi Investment-led inducements and inter-sectoral linkages. A second set of inducement mechanisms ace reflected in another analycical cradicion. hac seresees the importance of the iavestment-induced nature of rechnical change (Schmookler, 1966), end of rechnical linkages and imbalances among, firms and sectors (see Caclsson and Henriksson, 1991; Juseman and Teubsl, 1991). The exploitation of abundane natural resources is one varia ing opportunities for local technical change, technological competitiveness in upstream extraction and downstream processing. resources in Canada, USA and Scan processing. mi resource-based sectors has contributed 0 com goods used in these sectors (Patel and Pavi Tinkages have included chose from investment in mass-produced auromobiles “Technological Accumulation and In ic effece on shipbuilding, and railways and communications equipment in the early modernization of Japan (Nakaoka, 1987) rot cals began in dyestuffs, just as Germany has rt Successive waves of major innovations in chemicals, The Swedish os having begun in mining technology and ended up in (among. ‘other things) tobots—the common core being machinery and me ies thae have followed such tec based trajectories, First, chey tend to make technological choices noc simply con the basis of expected financial rewards, buc also che expected value of learning for the exploitation offorure technological gpportunities Pavic« aad Petel, 1988). Second, in science-based and scale-intensive sectors, specific inducement mechanisms and technolog cage are reflect ities of & number of dom 5. Technological Accumulation in Developing Countries veloping counties have spidy eccumolaed and 5. Theit share of wld manu 184‘Tedsnalogical Acconulation and Industrial Gt fg. semiconductors and telecommunications rave evidence: rate coaly rare of technological accumulation, We ‘advancing hypotheses thar relare ras about the chaeacterisics of late ind ‘The Dynamic Efficiency of Industrial Groweh 1992 for ceviews of che Technological Accenudetion and Indusiial Growth 187‘Other countries in South Bast As Indonesia) seem to be poised somewhere becween che Latin American and 188Tecbwologival Accumulation and Industrial Growth sn considerable actention ro strengthening their education and rations, the scale and orientation of these efforts have order co ‘Keep up! high definicion rated fr the major proportion oft found 80% compaced wich only about 20% undertaken by Srms them 190except variable among firms ecological Accioadation and Industrial Growth ‘been significan in just one or two public sector ‘Technological Accumulation and lndustrial Growth by R&D data for the advanced industrial economies. 2 3 Zi unce changed a 4Technological Accumulation and Industriel Grow imporeance of postgradu- ‘engineers and managers subsequent work expeti- ‘yas localized in kof capabil One can obviously draw up 2 long ‘échnology accumulation in such proportion of industry in developing.‘ Tecbnlogical Accumulation andl Japan's atcempe (0 impore technically absorbing fast-moving involved i _Miaiy handicap fiom technological macuricy. Second, the Korean automobile ‘We suggest that ewo other secular trends may be important. Fist, 196 197Tecbrological Accomulation and Industrial Growth rial Growth Technological Accretion and to have been the pid growth over a — Syn nvestment in I es ae Tnesiogly important asthethei ‘Technol infraseruccural_insticucio cal Accumulation and Industrial Growth cumulation i fi ( Technological Accumulation and Industrial Growth both them and the products they prod value-added activities in fueuce. Jo and managing change and it ignores the differentiated e.g. ‘control, R&D, and ever dynamic and competitive world the operating workforce use of unchanging technol ~ 20rTechnological Accumulation and ladusrial Grow ica Agrerent Bese FSI Reine 4 OECD, Pat ‘monn and Laing: be Too Tae of K&D’ Sone ergnce, nd Wel Comme Th Anan Eons enn eC non egal a a Oreille Engng Indi Es ‘epee Wecking apr ody Svs Pager. fs Wag, D. 204‘Tecbnelogical Accomulasion and Industrial Growth she pein of ‘pce of InsvsonSuperting Tesh Change ia ee), Nata uate Stent. rnd Uasy ‘Aalst Joper High Tesi ite Le. smi Pach Py and eH Inertial Eanos. MET Pes: Cacia, tnd, D. &. (969), The Usb Po Tohapil Chagall Dela i Weer Eup ow 150 1 tr Prt Coke Unie Fes: Cob ‘Yat Germany, Croom Hels Landon. Kove Sd Develgntee. Broking Pf te Neca ofa Deine Hey Boe, 2, “tasatan aan Incite Prt Fom Une Product laren co he eee Freeman: Meson, Sieber ad Soe eh, “he Dif of asin: A nective Sure’. Do ©. ena, B Mace and Sve ll Tobie hare and Eewois They. Per, Poblibes Tecbralgical Accumulation and Indusrial Growth Onn, . (198), Macrrconanie Fe Japs Tetley ito and Out Pore: Exenec InN Recor and, Fach eS, menial Tob Tran. ack (1989), ofseinion ad Tn In HB, Caner andT NS), Mann of Dewi! Eauo. Nats Head: Artec, Pack (1982) "Techy Cape Boe Delp nd Denying Cost: Av Thee Din betiecomen? Per entice Wot Bank heaal Corer Dot Basin, Washing fon. pi 30d ay 207Tedbwological Accumulation and Industrial Growth Pel nd Pat (891 Bae Teche eons a Reema Me Syn ‘Wate ab, Tena Pa Ene Gia Capo and Erinn Campion bates Betr Exe and ale Ci i th Wr Mare fr ‘iene pepe fr Te Jor Eecnanie Commitee of the US. Ging ol Quien fee Tabor Fore ia Baia end Gee alia ait 38. i of Sn, DLP Te Riel, ‘canon Delonte in Gs Ai: Doig What Comes Nawal? oH. Hage (ey Aekinig latin Bat es Cage Univer roe Cage, UK “Laing ods Acaalin of Technol Capac in repos Paemere Rare, Woe pope tat aout Oran 208 ‘ecbnological Accomulation and Indestrial Growth 'Y. W. Rice and G. Pan (191), Kaan Ids Conn Whe Cae Fra ‘Weed Bek, Sl wale Pipe No.4, Watngon OC 209