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Sanjaya Lall: Industrial Competitiveness and Technological Capabilities
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DOI: 10.19053/01203053.v40.n71.2021.10659
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Review article CENES notes

ISSN 0120-3053
E -ISSN 2256-5779
Volume 40 - N° 71
January - June 2021 Pages. 41 - 74
Sanjaya Lall: industrial

competitiveness and technological capabilit
Daniel Osorio Barreto *

Carlos David Cardona Arenas **
Cristhian Guillermo Naranjo Herrera ***
Date received: February 21, 2020

Approval date: September 15, 2020
Abstract: This article seeks to identify the theoretical and empirical development of the industrial
competitiveness research field around the concept of technological capabilities proposed by San
jaya Lall in the framework of firms. A methodology is used that consists of a systematic review of
the literature during the period between 1987 and 2019. As the main finding, the study made it
possible to clearly identify three future lines of research on the dynamics of technological
capabilities, the structure of incentives and the analysis of the macrofundamental variables, which
allows us to conclude that there is an emerging field of study in relation to the interactions between
technological capabilities, from their economic perspective, and resources and capabilities from
the strategic and administrative literature. With which this study contributes significantly to the
theoretical reflection on the relationship between technological capabilities and management, the
metrics of the firm's resources and the scenarios, environments and learning processes at the
individual, collective level. , organizational and inter-organizational of the firms.
Keywords: technological capabilities; industrialization; innovation; economic growth; competitive
advantages; signature.
JEL Classification: L0, L2, D4, M2.
How to cite this article:
Osorio-Barreto, D., Cardona-Arenas, C., & Naranjo Herrera, C. (2021). Sanjaya Lall: industrial competitiveness
and technological capabilities. Notes from Cenes, 40(71). P. 41 - 74. https://doi.org/
10.19053/01203053.v40.n71.2021.10659
* MC in Economics. Assistant Professor of the Department of Administration and Economics of the Autonomous University of
Manizales, Colombia. Attached to the Entrepreneurship Research Group. dosoriob@autonoma.edu.co https://orcid.org/
0000-0003-0848-6394
** MC in Economics. Assistant Professor of the Department of Administration and Economics of the Autonomous University of
Manizales, Colombia. Attached to the Entrepreneurship Research Group. ccardonaa@autonoma.edu.co https://orcid.org/
0000-0003-0089-1109 (Corresponding author)
***
Ph. D. in Business Administration and Human Resources Management. Associate Professor of the Department of Administration
and Economics of the Autonomous University of Manizales, Colombia. Attached to the Entrepreneurship Research Group.
cnaranjo@autonoma.edu.co https://orcid.org/0000-0002-2886-0067
41
Sanjaya Lall: industrial competitiveness and technological capabilities

Daniel Osorio Barreto • Carlos David Cardona Arenas • Cristhian Guillermo Naranjo Herrera
Sanjaya Lall: Industrial Competitiveness

and Technological Capabilities
Abstract
This paper seeks to identify the theoretical and empirical development of the research field of in
dustrial competitiveness on the concept of technological capabilities proposed by Sanjaya Lall in
the framework of firms. A methodology consisting of the systematic review of literature during the
period between 1987 and 2019 is proposed. As the main finding, the study clearly identified three
future research lines on technological capabilities dynamics, structure incentives and the analysis
of macro-fundamental variables, which allows to conclude that there is an emerging field of study
in relation to the interactions between technological capabilities, from its economic perspective,
and resources and capabilities from the strategic and administrative literature. So, this study
contributes significantly to the theoretical reflection on the relationship between technological
capabilities and management, the metrics of the firm’s resources, and the scenarios, environments
and learning pro cesses at firm´s individual, collective, organizational and interorganizational level.
Keywords: technological capabilities; industrialization; innovation; economic growth; competitive
advantages; firm.
42
CENES Notes Volume 40, Number 71, ISSN 0120-3053

January - June 2021, 41 to 74
INTRODUCTION before the economic growth of nations,

focused on industrial strengthening.
This work aims to identify the theoretical
and empirical development of the field
of research on industrial competitiveness For Dutrénit et al. (2019), technological
through the approach to the concept of capabilities tend to achieve the effective
technological capabilities, addressing use of technological knowledge to
the need of the field of applied promote innovation and effective
economics research. There are various investment in order to optimize
theoretical perspectives to understand production; position consistent with the
the determinants of the process of notion of technological capacity provided
generating added value, increased by García and Navas (2007) and by
competitiveness and results in economic Ince et al. (2016), who agree that
growth. Seminal works such as those technological capabilities allow the use
by Ramsey (1928), Solow (1956), Swan and exploitation of physical, financial,
(1956), Koopmans (1965), Usawa human, technological resources,
(1965), Lucas (1988, 1990), Porter information systems, and communication
(1990), Barro (1991), Rebelo (1991), as a contribution to the generation of
Barro and Lee (1994), Barro and Sala-i- economic benefits that encourage
Martin (2004), among others. The reinvestment. to adapt to technological
currents from economic theory originate challenges through innovation strategies
in the theoretical developments and thus produce competitive
proposed by Kaldor (1970), who advantages.
proposes a positive cumulative causation
between investment-productivity-exports- The field of research related to the
economic growth, a theoretical position accumulation of technological
that opens a line of research associated capabilities has recently been raised as
with the determi a central debate in the literature on
economics applied to organizations,
due to its importance in the
43

understanding of the determinants of In Lall's (1991, 1992, 2001) approach

their economic performance and the to technological capabilities,
achievement of business competitiveness is addressed from
competitiveness (Hansen & Lema, an industrial perspective, consistent
2019). Thus, competitiveness is the with the contributions of Kaldor (1961,
articulating element, understood as 1970, 1975) on industrial strengthening
the ability to generate added value in as an essential engine of economic
a sustained and sustainable manner growth, where it is defined as the
over time. From this perspective, the capacity of countries to increase their
levels of competitiveness described presence in domestic and international
by Chica (2007a, 2007b) are taken markets while developing their
into account from a systemic industrial sectors and activities with
perspective, which articulates the high added value and a high level of
firm, the sector/region and the nation technology (Lall, 1992).
with the accumulation of capacities,
as the main engine of growth. In this sense, it is intended to identify
accumulated causation system; This the theoretical and empirical
is in line with the original proposal by development of the field of
Lall (1992, 2001) where technological investigation of industrial
capabilities are the key element in competitiveness around the concept
the firm for competitiveness. In this of technological capabilities proposed
sense, Lall (2001) defines by Sanjaya Lall, within the framework
technological capacities as the of firms, in order to analyze the
abilities to use technological different strategies that can emerge
knowledge effectively1. With which within organizations to raise their
the application interest for business levels of competitiveness from the
decision-making is clear and accumulation of such capabilities.
articulated with the most recent Therefore, the specific objectives are:
derivations originating in Lall (2001), i) to examine the state of knowledge
in terms, for example, of more up-to-date and
technological changes,
the empirical linked
evidence to the resources an
of research
on the concept of technological
capabilities through a search strategy and ii) to ide
1 Based on the definition proposed by Lall (2001), Gonsen (1998) broadens its description as "the ability to select,
assimilate, adapt and improve existing or imported technology and/or creating new technology, based on an
effective use of knowledge technology” (p. 7). In this way, technological capacities can be broken down into two
processes: i) acquisition of capacity, associated with the search for available technologies together with their
alternatives and their appropriate selection, and ii) adaptive capacity, referred to the adaptation of the technology
to the specific conditions of production processes. Additionally, Enos (1991) highlights that from this perspective,
technological capabilities have two agents: individuals, who possess the skills and technical knowledge, and the
organization, understood as the set of institutions that bring together the different talents empowered by know-how.
in production as the central objective towards which the combined efforts of those with technical skills and
technological knowledge are directed.
44

research on the field of industrial pillars: investment capacities,

competitiveness in relation to this production capacities and linkage
concept. capacity.
Chica (2007a) highlights that the • Investment capabilities: they are

articulating axis of the dynamics of associated with the “skills necessary
competitiveness is the accumulation of to identify, prepare, and obtain
capabilities within firms, in such a way technology to design, build, equip,
that it captures organizational, staff, and/or commission a new
institutional and systemic elements facility (or expansion)”
that can be omitted by reductionist (Lall, 1992, p. 168). These
positions that exclusively associate the capacities determine the capital
competitiveness with productivity, cost of a project, the adequacy of
which go hand in hand with capital the scale of production, the
accumulation processes in a broad technology and equipment used
sense: fixed capital, financial capital, and, finally, the understanding by
knowledge capital, organizational capital. the firm when implementing the
To the extent that a capacity available technology, which affects
accumulation process occurs within in efficiency.
the firm (micro level), investment • Production capabilities: these
dynamics, technical change and market capabilities range "from basic skills
positioning supported by the two such as quality control, operation
generic forms of competitiveness will and maintenance to more advanced
be strengthened, which will strengthen ones such as adaptation,
the institutional network. described at improvement or 'stretching' of
the meso level and that will allow equipment, to the most demanding
greater awareness of the fundamental research, design and innovation"
aspects that affect the macro level. (Lall, 1992, p. 168), so they not only
Thus, Chica (2007a) affirms that the determine how well the available
central concept of this systemic vision technologies are operated and
of competitiveness is the accumulation improved, but also the internal
of capabilities, and highlights that one efforts associated with the absorption
of the authors who has contributed the of technologies recently acquired or
most to the economic analysis of imitated by other firms. • Linkage
capacities:
competitiveness is Sanjaya Lall with the focus defined ascapabilities.
on technological the "skills .
necessary to transmit information,
Specifically, Lall (1992) argues that in skills and technology to and from
the field of the firm, technological the company (along the value
capabilities can be understood from chain)" (Lall, 1992, p. 168), which
the following are not
45

They only affect the productive Hand in hand with the definitions
efficiency of the company, but also presented, the following table illustrates
the possibility of generating positive the dynamics of technological capabilities
externalities (spillover effects) in according to their level of complexity:
firms belonging to the same industry
or to complementary sectors.
Table 1. Matrix of technological capabilities

Investment Production
Project Engineering of Product Industrial linkage

Pre investment
execution processes engineering engineering
Pre-feasibility and Civil construction, D epuration, Design simulation Work flow, control Local procurement
feasibility studies,auxiliary services preventive control , of of inventoryproducts, of goods
Simple, routine location selection, , balance, quality programming adaptations,
, front of
minors
the study
in and services,
Basic
(based on investment equipment control, assimilation
of of needs, time of the market, movements exchange of
in programming assembly, access technology information with
experience) commissioning Y suppliers
Search for Procurement extension Improvement of Monitoring of the Technology

technological of equipment, equipment ,
product quality, productivity, transfer to local
sources, detailed cost and savings licensing and improves in providers
Adapt - va-Dupli engineering, assimilation of coordination
negotiation of adaptation, ,
- some (ba contracts, recruitment of technology licensing design coordination,

Intermediate
sada en la qualified new science technology
negotiation of
búsqueda)
adequate personnel new technology and links
terms, imported Y
information
systems
Basic equipment Internal innovation Internal product Cooperation

Innovated - design, design of innovation Basic capabilities in
ra-risk da and supply basic research , research , R&D, licensing of
Advanced
(based on processes processes

research) own
technology to third
parties
Source: Own translation based on Lall (1991).
Thus, the different types of technological productivity and technical change within
capacities contribute to the knowledge the firms in order to consolidate strategic
management of the company hand in or price competitiveness supported by
hand with the accumulation of capital the meso and macro determinants
(human, physical, organizational, in mentioned.
knowledge), to promote the production
46

It should be noted that the pillars of METHODOLOGY

technological capabilities at the firm level
Once the technological capacities were
are strengthened by the following factors
contextualized, based on the contributions
at the country level: i) capabilities,
of Sanjaya Lall, and their relationship with
promotion of physical investment, human
industrial competitiveness, a systematic
capital, and technological effort; ii)
review of the literature was carried out
incentives associated with the promotion
based on the following guiding question:
of the factor market, competition and
what has been the theoretical and
macro stability, and iii) institutions, rules of
methodological development of the
the game that facilitate the accumulation
technological capacities? technologies and
of technological and industrial capacities
their relationship with industrialization,
and the strengthening of human talent.
contributing to industrial competitiveness, in firms?
Despite the fact that there are previous

Based on what has been said, the
works on technology management by
connection of this economic perspective
Beyhan and Cetindamar (2013), the
with the theory of resources and capabilities
question posed aims to carry out a literature
is clear (Barney, 1991; Ambrosini et al.,
review that aims to understand the
2009; Miller, 2019) in the strategic-
contemporary vision of the concept of
administrative field, insofar as they refer to
technological capabilities and its relationship
a set of resources or intangible assets that
with technology. industrialization, reviewing
need to be identified and strengthened
the main scientific articles that have
through proper management, as suggested
continued the theoretical or empirical
by intellectual capital (Al-Jinini, 2019; De
reflection focused on the analysis of
Pablos & Edvinsson, 2020), so that the
specific cases of firms and countries.
combination of resources such as talent
and knowledge , for example, generate Based on the above, three key connectors
are identified to be included in the search
and stimulate various organizational
equation (EB), which is applied in the Web
capacities, such as those of a technological
of Science (WoS) and Scopus databases,
nature, in order to achieve and sustain
due to its level of impact2 and for the
competitive advantages. In this sense, the
window of time 1987 to 2019.
practical application of the theoretical
postulates addressed here is not only
possible, but convenient and extensive.
2 It should be noted that this search equation arises after a purification of synonymous concepts to industrialization
and firms, according to the conceptual structure proposed by Lall and the works subsequent to his contributions.
Additionally, the ending in of the third word of
* other
the search
suffixes
equation
of the same.
is associated with the possibility of articulating
47

Technological capabilities + Indus quantitative analysis was based on the

trialization + Firm* Bibliometrix tool developed by Aria and
Cuccurullo (2017).
The proposed EB aims to identify
articles (papers) that include in their RESULTS: CO STATE
title / abstract (abstract) / keywords KNOWLEDGE AND EVIDENCE
related to what is proposed. For this EMPIRICAL ABOUT THE CONCEP
purpose, the search is carried out in TO OF TECHNO CAPABILITIES
the WoS and Scopus databases, in LOGICS WITHIN THE FRAMEWORK OF
which the 1987-2019 analysis window COMPANIES
is obtained. Specifically, the EB yields Quantitative analysis

a very limited classification of scientific
articles to be reviewed, in the sense
When the proposed EB is applied, a
that a total of 11 articles is reached for
very limited classification of the
the case of WoS (from 2006 to 2019)
scientific articles to be reviewed is
and 36 articles for the case of SCOPUS
found, which is pertinent because it is
( from 1987 to 2019); which, once
closely associated with the purposes
systematized and unified in a database,
of the systematic review and allows
generate 40 documents to analyze as
the publications to be reviewed in
a result.
detail in a delimited frame of reference
for the purposes Of the investigation.
For this purpose, two types of analysis In relation to the areas of knowledge,
are carried out: i) quantitative, based
the search in Scopus makes it possible
on bibliometrics to identify the general to identify the most relevant: social
panorama of the state of knowledge in
sciences (28.8%); business,
terms of journals, authors, network of
management and accounting (27.3%);
co-occurrences, most relevant
engineering (16.7%); computer science
keywords and areas of knowledge on
(9.1%), economics, econometrics and
salient, and ii) qualitative, which
finance (9.1%). On the other hand,
describes and articulates the works
Figure 1 shows the number of
identified in the EB and its relevance
publications and citations in WoS:
to the field of research mentioned in
the first section. It is important to highlight that the
48

Figure 1. Number of publications and citations according to the EB (WoS).
Source: Own elaboration based on WoS.
On the other hand, in the ranking of (1992) with 1091 citations, Dahlman
authors according to their scientific (1987) with 273 citations, Kim (1999) with
production, it is found that the authors 138 citations, Bell (2006) with 90 citations,
are varied and do not stand out compared and Madanmohan (2004) with 46
to the number of published articles. In citations. Figure 2 summarizes the results:
this sense, the most cited articles are the following: Lall
Figure 2. Ranking of authors according to their scientific production
Source: Own elaboration based on Aria and Cuccurullo (2017).
Note: the size of the circle is proportional to the number of articles per year and
the color scale varies according to the number of citations per year.
49

Compared to the most prominent logic and industrialization. Figure 3 shows

keywords, the most frequent are those the co-occurrence graph according to the
related to technological capabilities. keywords:
Figure 3. Graph of co-occurrences based on the EB.

Source: Own elaboration based on Aria and Cuccurullo (2017).
Finally, the following findings are and Social Change (2) and Technovation
highlighted: i) some outstanding journals (2); ii) the number of citations is low
are evident within the compared to results obtained in other
publicaciones (International Journal of knowledge areas with expanded search
Technology Management (4), World equations; iii) Regarding the scientific
Development (4), African Journal of production according to the country, the
Science Technology Innovation and United States stands out with six
Development (2), European Planning publications and Brazil, Canada, China
Studies (2), Journal of the Asia Pacific and the United Kingdom with four
Economy (2), Technological Forecasting publications each.
50

Qualitative analysis (2005), Hsu et al. (2008), Zhou et al.

(2009), Lee et al. (2010), Chang (2012),
It is pertinent to make two clarifications Peerally and Cantwell (2012), More and
regarding the detailed analysis of the Jain (2013), Figueiredo (2014), Lavarello
publications that is presented below. et al. (2017), Arya and Bhaduri (2018),
Firstly, the works by Antrim (2005), Kale (2019) and Jun and Rowley (2019)
Amsden and Hikino (2006) and López - has placed at the center of the debate
(2010) are not included in this section the impact that the development of
as they are not closely associated technological capabilities has on
mind with the proposed research companies, industries and countries3 .
question, even though they were In this sense, Lall (1992) conceives
identified by the EB. Secondly, in order technological capabilities from the firm
to enhance the systematic review of the level to the country level through three
literature, some relevant references categories: i) physical investment, ii)
cited in the aforementioned publications human capital and iii) technological efforts.
were included, such as Fransman and
King (1984), Alam (1985), Kim and Kim For some decades now, empirical
(1985), Pack and Westphal (1986), evidence has shown that technology in
Reddy and Zhao (1990), Bell and Pavitt the context of international markets
(1992), Kogut and Zander (1992), differs in its levels between industrialized
Dutrénit and Capdevielle (1993), and non-industrialized economies; In
Cusumano and Elenkov (1994), Freeman this regard, Adei (1990) studies the
(1994), Villavicencio and Arvanitis experience of "Bonsa Tire Company", a
(1994) , Biggs et al. (1995), Brown and Ghanaian company that failed to focus
Domínguez (2004), Dutrénit (2004), its efforts on strengthening the
Coombs and Bierly (2006), Dutrénit technological capacity within the
(2007), Pérez-Escatel and Pérez (2009), company, and specifies that the
Hansen and Ockwell (2014) and Kiamehr (2017).
weakness in the technological capacity
of the company has been identified as
The study carried out by Lall (1992) is, an important factor explaining poor
in essence, the first attempt to review performance.
the implications for industrial strategy
derived from recent research on Recent work by Arvanitis et al. (2014)
technological capabilities. As specified follow this basis of analysis for emerging
in the document, recent literature -with economies in contrast to industrialized
works such as those by Wong and economies; is a theoretical reflection
Mathews based on studies
3 It is relevant to mention that classical and neoclassical economic literature shows that technology is available at all
times and places for companies that compete in a scenario of perfect competition.
51

empirical studies carried out in America innovative due to the collective

Latin America and China to identify construction of skills (Villavicencio &
and characterize the technological Arvanitis, 1994).
learning of companies, distancing from
traditional perspectives that focus on Based on these reflections, it is possible
the identification of internal and external to affirm that, in the literature on
technological activities, as well as the technological learning in companies,
qualified knowledge of industries and clusters in industrialized
the “techniques” that accompany these economies: "(...) most of it has focused
activities. The authors focus on the on issues related to change over time,
economic decisions that determine paths of technical change, trajectories
these activities and the appearance of of capacity accumulation, and the
innovative companies in emerging forces that shape these trends” (Bell,
economies as a product of these 2006, p. 25). As Oyelaran-Oyeyinka
decisions, they focus their attention on (2003) indicates, clusters are
organizing the dense areas of collective characterized by two dynamic elements:
learning in companies, in such a way the rates and types of technological
that they facilitate the growth of learning, and the nature and intensity
industrial companies around districts or of networking; Therefore, it can be
groups of companies that form clusters expected that there is a significant
and develop useful links to feed their correlation between the technological
productive capacity and benefit from capacities in the field of the firm and
positive externalities. the knowledge networks that allow the
construction of social capital within the
framework of industries, clusters or
The conclusions established by industrial districts. In this way, the study
Villavicencio and Arvanitis (1994) echo in question seeks to examine the
this statement, in which the authors intensity of networks and their
specify that "(...) some of these activities connotations (eg labor force
are designed to reinforce the company's subcontracting) as bases of
human potential to control its equipment technological knowledge in the
and this is translates into a consolidation framework of clusters formed in Nigeria,
of and finds that greater subcontracting
information research, engineering, translates into stronger links between
R&D” (2014, p. 505). In fact, case companies that belong to the cluster;
studies show that a company initially therefore, subcontracting is presumably
composed of relatively low-skilled an important type of contractual
personnel could be particularly efficient relationship in which the
and
52

Collaboration between companies is production capacity as well as

encouraged in order to reduce organizational or institutional
transaction costs. structures. In this regard, Gammeltoft
(2004) focuses on discussing the
On the other hand, learning as a concept of technological capabilities
determinant of the process of within the framework of local
accumulation of technological companies in the Indonesian
capabilities is also widely addressed technology industry, for which he establishes a dev
by Kiamehr (2017), which seeks to capabilities in the company in which
investigate the accumulation of four types of capabilities stand out: i)
technological capabilities in suppliers purchasing process, ii) operating
of complex capital goods for the case process, iii) process change and iv)
of an Iranian company. hydroelectric product change. From this perspective,
generation. The findings suggest that the article contributes to clarify the
the process of accumulating state and development of the industry
technological capabilities does not based on the increase in technological
start from the early stages of the capabilities, and identifies three types
product life cycle; in fact, the of companies: i) "intrinsic companies",
technological capabilities for this having Indonesia as their base of
Iranian company are acquired through operations; ii) “extrinsic” companies,
a non-linear movement within the which do not have Indonesia as their
stages of design and installation of base of operations, and iii) “state-
complex capital goods in projects: oriented companies”, which are state-
starting from the intermediate stage owned companies or private
(engineering and realization of companies driven by public
complex goods in projects), moving procurement. Contrary to expectations,
on to the last stage (operation and the operating capacities of the
problem solving of complex goods), manufacturers of intrinsic products
and finally returning to the first stage appeared quite high, which can be
(conception and design of complex explained by the fact that, being more
goods). In this way, the study suggests self-sufficient and autonomous, these
that “learning through projects” is an companies have relatively high
important determinant of the accumulationpurchasing and exchange
of technological capacities.
capabilities.
On the other hand, the author indicates
For his part, Gammeltoft (2003), from that "(...) foreign companies that apply
the framework of industrial advanced hardware and software
organization, exposes the idea that is technologies and, in general, operate
based on the recognition that with greater capacity utilization can
economies develop gradually through produce more efficiently" (Gammeltoft,
the cumulative expansion of both the 2004, p.65). Similarly, Liu
53

(1998) analyze Taiwan's industrial acquire foreign technology, as

success, identifying the learning industrialization advances in
capacity and the accumulation of developing countries.
human capital oriented by the synergy
between markets and the State as In a complementary way, Kim (1999)
key elements. Additionally, Bowonder points out that foreign suppliers and
(1998) defends the role of globalization original equipment manufacturers
and market liberalization as a often transfer critical knowledge to
promoter of competition and the producers to ensure that products
development of technological meet buyers' technical specifications.
capabilities in India in order to In other words: “(…) printed
enhance the existing technological infrastructure.
information, such as sales catalogues,
plans, technical specifications, trade
It is clear that the dynamics of publications and other publications,
accumulation of technological together with the observation of
capabilities in underdeveloped foreign plants, serve as important
countries differs substantially from informal sources of new knowledge
the dynamics of industrialized and for companies in countries in which
developed economies. A few decades development” (Kim & Kim, 1985, p.
ago, Fransman and King (1984) 314). The brain drain towards the
argued that the Third World has weak domestic economy and the return of
technological capabilities and that professionals trained abroad will
therefore the focus should be on probably succeed in increasing the
importing foreign technologies, rather technological learning capacity of
than on developing or accumulating companies in emerging economies;
local technological capabilities. . This Additionally, if companies in
affirmation is of importance at present, developing economies have
given that various studies show that
the terms of trade between developed absorptive capacity, they can
and underdeveloped economies effectively acquire foreign technology
deepen and accentuate unequal informally without any transaction
exchange; however, the focus on cost (Kim, 1999).
importing technological capabilities is
a relevant research front, where it is Additionally, it is undeniable that the
understood that productive efficiency transfer of foreign technology to
can also be explained to some extent emerging or developing economies
by the importation of knowledge, i. must also incorporate an effort to
and. accumulation of technological understand the learning processes
capacities through alternative that derive from it, in order to
mechanisms for accumulate technological capacities.
54

technological, training and industrial of technological capacity, and those

development. In general, studies show companies that proactively seek to
that emerging economies ignore the learn from foreign partners achieve
specific characteristics and conditions basic innovative levels of technological
of companies. In this sense, the works capabilities.
of Iguchi (2008), Moreira (2008), Poon
(2010), Lorentzen et al. (2011), Chen For their part, Madanmohan et al.
(2013), and Myint et al. (2015) analyze (2004) investigate the factors that
the possibility of generating backward affect the ability of firms in developing
and forward linkages by local suppliers countries to cultivate their technological
with transnational corporations through capabilities through imported
foreign direct investment and technology, highlighting the role of the
technology transfer, as a way of Government and the national
promoting industrialization and the technological infrastructure as external
accumulation of technological factors that affect the technological
capacities. capabilities of the company. In their
research, in line with Sussangkarn
and Manupipatpong (2015), data
In this sense, Hansen and Ockwell collected from Indian and Indonesian
(2014), and similarly Shi (2005), in manufacturing companies reveal that
relation to the role of foreign direct investment in R&D, availability of
investment as a driver of industrialization technical staff, transfer channels,
in China, contribute to fill this gap by government involvement and the
using in-depth qualitative data. of the company's learning culture contribute
company to analyze to what extent significantly to the technology capability
the use of different learning process.
mechanisms can explain the
differences in the process of Various authors have focused their
accumulation of technological attention to analyzing these internal
capabilities, for which they focus the factors and their relationship with the
analysis on eight companies in the development of technological
biomass energy equipment industry in capabilities; The works of Kogut and
Malaysia during the period 1970-2011; Zander (1992), Cusumano and
Among its main conclusions is that Elenkov (1994) and Reddy and Zhao
companies that rely on a combination (1990) stand out, which highlight the
of learning from foreign technology idea that the capacity of companies in
partners and internal learning through developing economies to absorb
planned experimentation make the imported technology they depend on
most progress in terms of their internal strategic capabilities.
Regarding external factors, Madanmohan et al. (20
55

Government (whose participation ranges In summary, it can be affirmed that the

from active support in the form of process of accumulation of technological
subsidies, tax benefits and more indirect capacities can be analyzed from different
methods to government regulations that perspectives and categories; Thus, Kim
have a significant influence on (1999) develops an integrative model to
technological change) and the national examine the technological learning
technological infrastructure as process in the company based on five
determinants of development. categories of analysis: i) technological
technological development, which agrees trajectory, ii) absorption capacity, iii)
with the work of Alam (1985). technology transfer iv) crisis construction
and v) dynamic learning process; all
In relation to the external factors important when analyzing the process of
mentioned, Fessehaie (2013) affirms creating technological capacities for
that the Government is an agent of industrialization.
preponderant importance as a catalyst
for the process of accumulation of
technological capacities; specifically, It must be understood that the process
investigates the transfer of the local of accumulating technological capabilities
supply chain from Zambia to the copper translates into product and process
mining sector, under the innovations from the perspective of
Structural Adjustment Program during continuous technological change, an
the 1990s, whose adopted policies idea developed by Pack and Westphal
allowed the arrival of foreign direct (1986), who considers technological
investment, necessary to encourage the change as the heart of technological
accumulation of technological capacities; change. dynamic industrialization
However, the dismantling of industrial process. Thus, innovation turns out to
policies meant that companies no longer be an important component of analysis,
received support to develop technological since it is understood as a matter of
capacities and access skills and capital, survival within the framework of
which translated into a privatization globalization; In this way, the literature
process where the governance of the that relates technological capabilities
value chain is affected. of and innovation is extensive and has
different perspectives and theoretical
in a negative way in order to support approaches, such as the case of Santos
the technological updating of supply et al. (2015), who carry out a bibliometric
supply companies. review of the literature in which they
seek to map the authors, institutions,
journals and the evolution of scientific production.
4 It is important to mention that the author presents as an example the experience of South Korea, a country that has
managed to perceive high economic growth within the framework of the accumulation and creation of technological capacities.
56

around innovation and technological Based on the foregoing, through the

capabilities, delimiting an adequate process of accumulating technological
state of the subject that places this capabilities at a microeconomic scale,
field of study as emerging in the economies of scale are present not
investigation of the competitiveness only in the framework of production
of organizations. processes, but also in the process of
creating social capital among
An alternative perspective is delivered companies of a sector or a group of
by Dahlman et al. (1987), who affirm sectors, which in the medium term
that the center of technological becomes a determining factor of
development is to acquire the competitiveness (Jonker et al., 2006).
necessary capacities for efficient In the aforementioned study, the
production and investment, authors develop some quantitative
considering that countries and firms measures regarding variables such
that have invested too much effort in as the technological effort referred to
achieving technological self-sufficiency the machine, technological capabilities
have, in fact, experienced scenarios and economic performance for the
of low productivity, and conclude that paper industry in West Java in
it is much more efficient, in the Indonesia to conclude that it is
economic sense, to combine local feasible to operationalize and measure
and foreign technological components, the technological efforts, the
and to do so in a way that progressively technological capacities and the
develops local capacities in areas economic performance referred to
where they can be more efficient. the machine, although they did not
Thus, the acquisition of technological find positive and significant correlations
capability comes not only from between the various indicators of the
experience, but also from efforts to technological effort and the
monitor and track developments technological capacities; however,
around the world, accumulate skills, these results are justified by Biggs et
and increase the ability to respond to al. (1995), who point out that for
competitive challenges. in international African manufacturing, the general
markets. level of learning efforts and linkages
Finally, the economic environment, in developing countries is so low that not much va
through its influence on the learning efforts.
technological efforts of companies,
plays a very important role in On the other hand, although it is understood
determining the productivity of resources.that there is a non-explicit relationship
between the accumulation of technological
capabilities and competitiveness, Pérez-
Escatel and Pérez (2009) suggest a relationship
57

implicit that highlights the importance of deeper and broader knowledge pathways
analyzing the technological behavior of and develop new types of knowledge
manufacturing companies from the management5.
commercial opening and identifying the
effects on the acquisition of technological In a complementary way, Coombs and
capabilities within the framework of Bierly (2006) point out that the
Mexican firms, based on the assumption relationship between technological
that competitive advantages are capabilities and the performance or
manifested through through the performance of the company is more
accumulation or acquisition of complex than can be supposed, taking
technological capabilities. In this sense, into account that the literature that
Dutrénit and Capdevielle (1993) express provides empirical evidence of this
the idea that the accumulation of relationship underlying is scanty; For
technological capabilities arises from a this reason, the authors seek to measure
minimum level of technological and illustrate its theoretical and empirical
knowledge, generally in the scenario complexity and explain why the use of
where companies are young and focus various measures can lead to very
on learning from experience. Therefore, different results. To this end, they
after a certain time, it is probable that analyze the technological capability-
new productive activities will arise that performance relationship in 201 large
imply the accumulation of technological public manufacturing companies in the
capacities to carry out innovative United States, and find that using the
productive processes or innovation total number of patents and R&D
activities; however, Dutrénit (2004) spending are not valid measures of a
indicates that there is no simple linear company's technological capabilities. signature.
progression from the initial stage of
accumulating the minimum levels of It should be noted that the improvement
innovative capacity to knowledge in the performance of firms through the
management as a strategic asset and accumulation of technological capacities
the deployment of basic capabilities. On should probably translate into an
the contrary, the transition process is improvement in the country's competitiveness.
complex and although companies make In this sense, Freeman (1994) highlights
that transition, they have to create the role played by technical change
reserves.
5 This reflection is reinforced in Dutrénit (2007), who emphasizes the transition process from the process of developing
technological capabilities to the development of strategic capabilities with the purpose of approaching the
technological frontier. In the same way, the author points out that the literature based on the link between learning
and the accumulation of technological capacities has focused mainly on analyzing the learning processes involved
in the gradual construction of a minimum base of technological knowledge to be able to carry out innovative
activities (in the same vein as Bell & Pavitt, 1992). It should be noted that this description conceives that
technological capabilities (skills and technological knowledge) will be necessary to develop, produce and sell new
products, in addition to being able to create new technologies that serve the stated purposes.
58

as a determinant of innovations, its a channel of transmission of effects

diffusion in the firm and in the industry, between the accumulation of technological
hoping then that the competitiveness of capabilities and economic growth.
a country is also determined by the
process of technical change. Finally, it is worth noting the contributions
In this line, with the intention of of Rasiah (2004), who builds a broad
quantitatively measuring the relationship analysis focusing on the experiences of
between the accumulation of technological Asian, African and Latin American
capabilities and competitiveness, Pérez- economies, using innovative techniques
Escatel and Pérez (2009) follow the for technological capabilities and
methodology of Brown and Domínguez economic performance for countries with
(2004), in which they build an index of different levels of industrialization: Brazil,
capacities technologies based on the Costa Rica, Indonesia, Kenya, Malaysia,
theoretical and practical considerations South Africa and Uganda. The
of Lall (1992) and Bell and Pavitt (1992). aforementioned study is especially
rigorous in the conceptual framework
It should be noted that the work of Biggs used, as well as in the coverage of the
et al. (1995) can be considered one of literature addressed, which has made it
the first systematic attempts to assess one of the most consulted publications
the relationship between technological regarding the relationship between
capabilities and firm productivity using economic performance and technological
primary data from two surveys conducted capabilities. cas in the sense proposed
in manufacturing firms in Ghana, Kenya, by Sanjaya Lall, to carry out a series of
and Zimbabwe. This work focuses on tests in which the analysis of the role
general aspects related to the played by foreign firms in improving
determinants of manufacturing technological capabilities and
productivity, the levels of endowment of competitiveness is deepened.
technological capabilities, the specific
nature of the technological efforts
undertaken by manufacturing companies DISCUSSION AND REFLECTION
and the limitations they face to improve THEORETICAL
such efforts.
After the systematic review of
In the literature, it is highlighted that the
In this way, it seeks to understand in
study of technological capabilities at the
detail the link that exists between
level of the firm -and at the national level-
technological capabilities, technical
is an area of interest for the economy
productivity and the growth of the firm,
and the management of organizations,
and the possibility that there exists
since it tends to identify clear determinants
for the accumulation of such capabilities. ,
59

in order to enhance industrial From the review, based especially on

competitiveness and generate a the contributions of Kim (1999) and
continuous feedback process, in which Madanmohan et al. (2004), the following
the reviewed empirical studies and synthetic scheme is constructed that
theoretical reflection allow us to glimpse envisions the dynamics of technological
a clearer picture of the concept capabilities in light of its main
developed by Sanjaya Lall throughout determinants, its necessary conditions,
his academic career. and its mediators:
Market economy + Institutions

Determinants
ÿ Technological capital – Arvantis et al. (2014) ÿ

Human capital – Villavicencio and Arvantis (1994) ÿ
Organizational capital – Gameltoft (2003, 2004) ÿ
Knowledge import – Fransman & King (1984), Kim
(1999)
ÿ Public infrastructure and public policies – Alam (1985),
Fessehaie (2013)
Capabilities
Necessary conditions Technological
ÿ Economies of scale – Jonker et al. (2006) ÿ 2004)
ÿ Minimum technological knowledge – Dutrénit &
Capdevielle (1993) ÿ Technical change - Freeman (1994)
Mediators
ÿ Posiÿve externalities – Kim & Kim (1985) ÿ Interacÿon

types of capital (technological, human, organizaÿonal) – Pérez, ÿ Collaboraÿve learning _ Escatel & Pérez (2009)
– Kiamehr (2017), Hansen and Okwell (2014), Dahlman et al. (1987) ÿ Innovation – Santos et al. (2015)
Figure 4. Dynamics of technological capabilities

Source: own elaboration.
The constructed scheme allows mediating effects enhance these

dimensioning the relationship between relationships. Based on the foregoing,
the determinants of the accumulation one cannot lose sight of the fact that
of technological capabilities of the reason why these mediating effects
companies within the framework of a should exist is due to the fact that the
market economy and formal institutions process of accumulating technological
that are oriented towards productive development,
capabilities
whoseis a dynamic process.
60

non-linear and, therefore, requires an which is achieved through collaborative

effort to identify factors that allow the work within the framework of the
synergy between determinants, formulation and execution of projects
necessary conditions and accumulation that go from the stages of design,
of capacities. engineering and operation and problem
solving (Kiamehr, 2017); second,
Among the necessary (minimum) learning can also be achieved through
conditions for the accumulation of imports (Dahlman et al., 1987) if it is
technological capacities, the considered to be much more efficient, in
achievement of economies of scale that the economic sense, to combine foreign
are a reflection of productive efficiency and local technological components,
and that also allow the creation of social and to do so in a way that progressively
capital among companies in a sector or develops local capacities in areas where
they can
a group of companies stands out. sectors (Jonker be 2006).
et al., most effective; Third, the
However, in order to raise production accumulation of technological capabilities
levels and continuously reduce average does not come solely from experience,
production costs over time (economies it also comes from efforts to monitor and
of scale), a minimum of basic track developments around the world,
technological knowledge is required to which may involve reviewing printed
learn from experience and allow the information (ie technical specifications,
emergence of new productive activities. trade publications, and other publications)
that imply the accumulation of and a process of observing foreign
technological capabilities to carry out plants, which serves as an important
innovative production processes (Dutrénit source of new knowledge (Kim & Kim,
& Capdevielle, 1993). Similarly, technical 1985); In this sense, an intermediate
change as a necessary condition position is presented by Hansen and
Ockwell (2014) when specifying that
saria is a mechanism of diffusion of companies that rely on a combination of
knowledge skills in the firm and in the learning from foreign technological
industry, which provides unparalleled partners and internal learning, through
opportunities for learning derived from experience, achieve the greatest
productive experience (Freeman, 1994). progress in terms of technological
capacity. .
However, collaborative learning as a

mediating element between the
necessary conditions and the
determinants of the accumulation of The technology surveillance process
technological capabilities has different also depends on the results of the
connotations: first, learning international market and the adjustment
61

temporary strategic of companies with It is an important component of

the external environment; it is a analysis, since it is understood as a
process of temporal synchronization matter of survival in the framework of
of the internationalization parameters globalization (Santos et al., 2015),
as a strategy of adaptation to global which goes hand in hand with the
dynamics (Popli et al., 2017). interaction of the different types of
In this sense, Pérez (2020), through capital within firms. (technological,
a panel analysis with temporary human, organizational, among others)
effects, finds that imports of to promote their insertion in
technological inputs and highly international markets effectively
complex products constitute a factor (Pérez-Escatel & Pérez, 2009).
that drives technological capacity in
Mexico, which validates the idea that Finally, organizational capital stands
the mediating components they set out as one of the main determinants
the stage for exploring the channels of the accumulation of technological
that make it possible to effectively capacities, which manages to stimulate
accumulate technological capabilities. the cumulative expansion of both
production capacity and organizational
It should be noted that the process or institutional structures (Gammeltoft,
of technological diversification in 2003, 2004), having Keep in mind that
technological capacities plays a organizational activities play an
decisive role in reinforcing competitive important role in achieving qualified
advantage. In this regard, Kook et al. knowledge of the “techniques” that
(2017), after analyzing the temporal accompany these activities. In
evolution of technological diversification addition, knowledge is further
in South Korea, recommend that the enhanced to the extent that
company should concentrate/specialize collaborative work is translated into a
in a specific technology to reinforce technical learning process; The
competitive advantage and literature indicates that a good part of
subsequently exploit technological the organizational effort is designed
diversification; Thus, this perspective to reinforce the company's human
opens a temporal analysis approach potential to control its equipment,
related to the dynamic adjustment of which translates into a consolidation
technological capabilities over time of information research, engineering,
and its result in the generation of R&D and, therefore, in the accumulation
of human capital (Villavicencio &
positive externalities as a result of its diversification.
Arvanitis, 1994) and technological
With the appearance of positive capital (Arvanitis et al., 2014). In a
externalities as a result of the transversal way, the Government
plays an important role
mediating processes already described, innovation
62

through a solid institutional infrastructure competitiveness proposed by Chica

and the national technological (2007a), which are in line with the
infrastructure, as determining factors process of cumulative causation or
of technological development in the virtuous circle developed by Kaldor
firm, which range from active support (1961).
in the form of subsidies, tax benefits
and more indirect methods, to On the other hand, the systematic
government regulations that have a review of the literature allowed us to
significant influence on technological discover a relevant research area for
change (Alam, 1985). industrial organization and business
strategy, with a rich theoretical
CONCLUSIONS reflection accompanied by various
empirical works that facilitated the
In this theoretical reflection, it is
construction of the proposed synthetic
observed that the process of
scheme, three being fundamental.
accumulating technological capabilities
publications with supporting conceptual
in the firm is permeated by factors
and analytical development: Kim
considered at the meso and macro
(1999), Madanmohan et al. (2004) and
levels of competitiveness (Chica,
Pérez-Escatel and Pérez (2009),
2007a); It is a continuous feedback which led to the identification of the
process that seeks to generate added
essential elements of the accumulation
value in the goods and services offered of technological capacities: the
by organizations, in which medium
necessary conditions, the mediators
and high technology exports are a key and the determinants highlighted in the previous se
element of growth and economic
development, according to the
Based on this review exercise, three
approaches of Sanjaya Lall. In this
future lines of research are proposed:
sense, his focus on technological
i) taking into account that most of the
capabilities as a fundamental
works that are in line with Lall seek to
determinant of industrial competitiveness
allows connecting the economic identify the dynamics of technological
capabilities in emerging countries, it
analysis of this phenomenon with the
would be interesting carry out
strategic dynamics of the organization,
by identifying key determinants such comparative studies between firms
from developed economies and
as the accumulation and interaction of
emerging economies, which take into
different types of capital. , the
account the synthetic scheme built to
importation of knowledge and the
propose public policies and business
infrastructure and public policies
strategies; For this, the models built
defined by governments. In this way,
by Pérez-Escatel
a broader view is obtained regarding the interaction and Pérez
of the levels of
63

(2009) represent a valuable input; ii) technological capabilities, aspects such

considering that firms engage in as management and metrics of the firm's
imperfect competition scenarios, intangible resources/assets, scenarios,
variables associated with market failures environments, and individual, collective,
(eg information asymmetries within organizational, and interorganizational
organizations) and State failures (eg learning processes, and the generation,
distortion in incentive structures) could dissemination, application,
be included in order to have a panorama institutionalization, and exploitation
consistent with the meso level of system tion of knowledge, represents
competitiveness described above, and an opportunity to analyze and achieve a
iii) include within the studies of the firm's greater understanding of the subject, as
technological capabilities, well as to improve decisions and actions
macrofundamental variables such as in this regard, based on interdisciplinary
those described by Chica (2007a), which work.
capture the dynamics of stability, growth
and development of the economies in THANKS
which the firm is located.
The authors appreciate the comments
of the anonymous reviewers.
ours from the Magazine.
Another line of research that emerges
from the study is aimed at investigating
the interactions between technological CONTRIBUTION OF THE
AUTHORS
capabilities from their economic
perspective and resources and The authors participated jointly
capabilities from the strategic and throughout the construction of the article.
administrative literature, so that the
contributions of knowledge management
( Gaviria-Marín et al., 2019; Oliva et al., DISPUTE STATEMENT
2019; Martins et al., 2020), organizational OF INTEREST
learning (Hansen & Lema, 2019; Ipek,
2019; Zuo et al., 2019) and intellectual The autors declare that does not exist
capital (Ahmad & Bin Mohammad, 2019; an interest conflict.
Martín et al., 2019), along with the
dynamic capabilities approach (Teece & FINANCING
Pisano, 2003; Carattoli, 2013; Albort-
This work did not have any type of
Morant et al., 2018), complement and
institutional financing, it was carried out
produce synergistic effects. with human resources from the authors.
Incorporate into the economic reading of
64

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Sanjaya Lall: Industrial Competitiveness and Technological Capabilities

Article in NOTES FROM DINNER March 2021

Daniel Osorio Carlos David Cardona

Autonomous University of Manizales Autonomous University of Manizales

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Review article CENES notes

Sanjaya Lall: industrial

Daniel Osorio Barreto *

Date received: February 21, 2020

Sanjaya Lall: industrial competitiveness and technological capabilities

Sanjaya Lall: Industrial Competitiveness

CENES Notes Volume 40, Number 71, ISSN 0120-3053

INTRODUCTION before the economic growth of nations,

Sanjaya Lall: industrial competitiveness and technological capabilities

understanding of the determinants of In Lall's (1991, 1992, 2001) approach

CENES Notes Volume 40, Number 71, ISSN 0120-3053

research on the field of industrial pillars: investment capacities,

Chica (2007a) highlights that the • Investment capabilities: they are

Sanjaya Lall: industrial competitiveness and technological capabilities

Table 1. Matrix of technological capabilities

Project Engineering of Product Industrial linkage

Search for Procurement extension Improvement of Monitoring of the Technology

- some (ba contracts, recruitment of technology licensing design coordination,

Basic equipment Internal innovation Internal product Cooperation

(based on processes processes

Source: Own translation based on Lall (1991).

CENES Notes Volume 40, Number 71, ISSN 0120-3053

It should be noted that the pillars of METHODOLOGY

Despite the fact that there are previous

Sanjaya Lall: industrial competitiveness and technological capabilities

Technological capabilities + Indus quantitative analysis was based on the

is obtained. Specifically, the EB yields Quantitative analysis

CENES Notes Volume 40, Number 71, ISSN 0120-3053

Figure 1. Number of publications and citations according to the EB (WoS).

Source: Own elaboration based on WoS.

Figure 2. Ranking of authors according to their scientific production

Source: Own elaboration based on Aria and Cuccurullo (2017).

Sanjaya Lall: industrial competitiveness and technological capabilities

Compared to the most prominent logic and industrialization. Figure 3 shows

Figure 3. Graph of co-occurrences based on the EB.

CENES Notes Volume 40, Number 71, ISSN 0120-3053

Qualitative analysis (2005), Hsu et al. (2008), Zhou et al.

Sanjaya Lall: industrial competitiveness and technological capabilities

empirical studies carried out in America innovative due to the collective

CENES Notes Volume 40, Number 71, ISSN 0120-3053

Collaboration between companies is production capacity as well as

Sanjaya Lall: industrial competitiveness and technological capabilities

(1998) analyze Taiwan's industrial acquire foreign technology, as

CENES Notes Volume 40, Number 71, ISSN 0120-3053

technological, training and industrial of technological capacity, and those

Sanjaya Lall: industrial competitiveness and technological capabilities

Government (whose participation ranges In summary, it can be affirmed that the

CENES Notes Volume 40, Number 71, ISSN 0120-3053

around innovation and technological Based on the foregoing, through the

Sanjaya Lall: industrial competitiveness and technological capabilities

CENES Notes Volume 40, Number 71, ISSN 0120-3053

as a determinant of innovations, its a channel of transmission of effects