A country´s economic performance and wealth is clearly linked to the degree of the country´s industrialization process. This process is in turn connected with the diffusion of technology within and into the country (Clark et al. 1993). In the special case of developing countries the next step of industrialization must not even be an innovative one because the technology already exists in developed countries (Henry/Kneller/Milner 2009). Additionally the absorption of newer technologies should even become easier the bigger the lag to the technical frontier becomes. Hence, it has to be questioned why many developing countries are not able to efficiently overtake and use technologies from developed countries to reduce their lack of development although those technologies seem to be so easily available. The expansion of information and communication technology should make the access to them even easier.
Another important point is that reaching a certain level of industrialization enables a country´s industry to be innovative itself by adjusting existing technologies or by creating new connections between different “old” technologies. In this way further development could be reached like the economic success stories of East Asian countries, e.g. South Korea, show. It has to be questioned which lessons today´s developing countries mainly in Africa can learn from these countries while keeping in mind that they do have other specific preconditions.
This essay is structured as follows. It starts with outlining some necessary definitions. It is followed by an observation which requirements developing countries need to successfully absorb technologies. Afterwards it provides a look at the special case of South Korea and its development that shows how technology absorption could look like in a developing country. Then the essay continues with a guideline for a government´s trade and technology policy before it ends with some final conclusions.
Table of Contents
1. Introduction
2. Definitions
3. Can Africa learn from Korea?
4. Requirements for the Absorption of Technologies
4.1 Access to the technology
4.2 Ability to absorb technology
5. What can the government do?
5.1 Building up a proper education system
5.2 The right Trade Policy
5.3 Technology Policy
6. Conclusion
Objectives and Topics
This essay explores the mechanisms through which developing countries can accelerate their industrialization by absorbing and adapting pre-existing technologies from more developed economies. The primary research focus lies on identifying the essential requirements for technology absorption—specifically access to knowledge and the development of internal technological capabilities—and evaluating the role of government policy in facilitating this catch-up process.
- Theoretical foundations of technology diffusion and adoption.
- Core requirements for successful technology transfer in developing nations.
- Analysis of the South Korean economic growth model as a reference case.
- Government instruments regarding education, trade, and technology policy.
Excerpt from the Book
Ability to absorb technology
Even if a country has open access to a new technology it needs the ability to absorb it. Due to the complex and wide ranging characteristics of technologies the needed prerequisites can also vary. In general there is a need for a knowledge base and for technological capabilities.
One of the most important aspects of the ability to absorb a technology is the providing of a knowledge base in the country. The providing of that starts at the primary education level that enables everyone for further education and provides the ability to learn. So it is a prerequisite for further education like the learning of a profession. A solid knowledge base contains of skilled workers, engineers and managers who are able to use the technology in the right way. For that they also need tacit knowledge which is difficult to transfer and hence cannot be learned at school. Tacit knowledge consists for example of the ability to adjust a technology to the specific conditions under which it is used in a certain firm. Just then the country´s industry can gain benefits from the introduction of an innovation. A system of fostering professional development and the building of professional networks can help workers to gain tacit knowledge about the usage of new technologies.
Summary of Chapters
Introduction: Outlines the connection between industrialization and technology diffusion, establishing the motivation for studying how developing countries can overcome their development lag.
Definitions: Clarifies fundamental concepts such as technology, innovation, diffusion, and adoption, while establishing a working definition for developing countries.
Can Africa learn from Korea?: Examines the South Korean economic success story since the 1960s to identify lessons regarding the role of technology absorption in rapid growth.
Requirements for the Absorption of Technologies: Details the necessity for both access to foreign technology and the internal ability to effectively utilize that technology.
What can the government do?: Discusses various policy instruments, including education, trade strategies, and technology initiatives, that governments can leverage to foster industrial development.
Conclusion: Synthesizes the core findings, emphasizing that while the South Korean path is unique, the fundamental strategy of technology absorption remains a viable tool for developing nations.
Keywords
Technology absorption, industrialization, developing countries, technology diffusion, economic growth, South Korea, human capital, innovation, trade policy, import substitution, export promotion, technology policy, tacit knowledge, knowledge base, economic development.
Frequently Asked Questions
What is the core focus of this work?
The work focuses on the economics of technological change and how developing countries can catch up to advanced nations by efficiently absorbing and adapting existing technologies.
What are the central thematic areas?
The central themes include the requirements for technology absorption, the role of education systems, trade policy strategies, and the design of national technology policies.
What is the primary research question?
The primary research question is how developing countries can efficiently overtake and use technologies from developed countries to reduce their development lag, considering specific local preconditions.
Which scientific methods are applied?
The paper utilizes a comparative analysis of economic theory and empirical case studies, particularly drawing on the development path of South Korea to derive policy recommendations.
What topics are covered in the main section?
The main section covers the definitions of technological concepts, the identification of absorption requirements (access and ability), and specific government policy levers like education and trade regulation.
Which keywords characterize this publication?
Key terms include technology absorption, industrialization, economic catch-up, human capital, and technology policy.
Why is the South Korean case study particularly relevant here?
South Korea serves as an illustrative model because it successfully transformed from an agrarian economy to a high-tech exporter within three decades through the effective absorption of pre-existing technology.
How does the author define the "ability to absorb technology"?
It is defined by the presence of a solid knowledge base and technological capabilities, which enable firms to not only operate machines but also adapt them to local conditions via tacit knowledge.
What is the relationship between trade policy and technology transfer?
Trade acts as a primary channel for technology diffusion; the author compares "import substitution" and "export promotion" as distinct strategies to manage this flow and encourage industrial competitiveness.
- Quote paper
- Konrad Liebig (Author), 2010, Catching up through technology absorption, Munich, GRIN Verlag, https://www.grin.com/document/201889
