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Technology is an integral part of industrialization and development. But it is not often the prime focus of attention.

. the subject of technology, and its importance to industrialization, has cropped up regularly but seldom centrally. Key points on Technology and Industrialization Internalization of production means that manufacturers are faced with many choices about what to produce, how and where to produce it, and therefore what technologies to use. Technological changes, including the introduction to microelectronic systems and associated information technologies, have increased flexibility of production. One factory can now produce a wider range of products and services. Technological levels and capabilities vary between different Third World countries, between enterprises in the same country and even within enterprises. Technological capabilities have been critical in countries, such as Brazil and South Korea, where industrialization has been rapid. Low technological capabilities weaken the bargaining position of most developing countries in acquiring technology from elsewhere. The choice of technologies available to developing countries is limited. So inappropriate technologies are often developed locally or imported Technological Capability involves: the ability to search for available alternatives and to select appropriate technologies the ability to make selective use of technology in producing goods and/or services adaptation of technology to suit specific production conditions the further development of the technology as a result of minor innovations the development of institutionally organized research and development facilities conducting basic research. Approaches to Technological Capability Black Box : There was no need to look into it because all that mattered was what went in and what came out Neo-liberalism vs Structuralism by integration into the world economy, relying on foreign technology, through direct foreign investment and/or licensing by building a local capacity in technology through a process of technological learning.

Alternative Approach: Technological capability should be taken seriously in its own right. Building National Technological Capability

Foreign Technology and Technological Capability Foreign Capital Investment simplest method of importing foreign technology: encouraging foreign capital investment Negotiating Technology Transfer *In South Korea there has been a close collaboration between political and industrial interests in electronics, which has allowed a strong basis for restriction of foreign capital. *India, by contrast, has not been so successful in building up the negotiating power of South Korea and as it moves into a period of liberalization towards foreign capital, local firms are becoming increasingly marginalized. Benefits from Restriction : Access to foreign technology on favorable terms is dependent on bargaining power Education and Training 2 Kinds of Learning: the acquisition of technological skills and knowledge by individual and, through them, by organizations the acquisition of increased technological capability (or technological learning) 3 Ways of Learning: learning by doing learning by using learning from changing