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Soft technologies are filled with latent possibilities and potentials, enabling many creative
and flexible uses, whether they are human processes or embodied in machines
Hard technologies are concerned with efficiency, replicability and the elimination of
errors.
Both soft and hard technologies may be created and evolve through a process of
assembly. The difference between them lies in the manner of assembly. Hard technology
assemblies replace softer parts with harder ones: for instance, an automatic assignment
submission system may replace a softer and more flexible manual submission process. Soft
technologies become softer through augmentation and extension: the hardest of technologies
may be softened by adding it to another. For instance, to extend the previous example, were a
teacher to allow students to submit via email in the event of the automated submission system
failing (for instance, if it limited upload sizes or allowable dates for submission) then it would
become softer, more malleable and forgiving.
II. Process of Technology Development
Innovation and capability theory have both pointed to the highly complex pattern of
relationships that either influences or shapes technology proper. Large-scale firms have more
resources than small-scale ones, though the latter are not passive absorbers. They might have
to rely on their environment institutions.
It was expected by developmentalists that labor-abundant countries would adopt laborintensive methods of production. However, this did not happen because a technological
imperative exists that overrules allocative mechanisms. Hence, studies emerged showing that
technology comes in packages. Acquisition of technology or development of technology could
be made difficult by, for example, the enterprises culture or its environment. What this all means
is that there is, for example, no clear-cut division between externalities and endogenous factors
and between some carriers of technology.
Development of technology depends on what and how knowledge, skills, and
information can be acquired. Enterprises, whatever their size, are not passive entities. They
undertake a variety of activities to develop their technology and in this study they have been
divided among three technology acquisition strategies.
Figure 1.1 depicts a firm acquiring (carriers of) technology, through a variety of activities
which in turn describe the inter-enterprise, enterprise-institutional, and intra-enterprise
technology acquisition strategies (TAS). These activities may (not) result in the development of
technology which is defined in terms of capital intensity raise (K/L) or mechanization of
production and higher productivity (O/L). While we have described some of the constraints that
might hinder the transfer of technology, all three technology acquisition strategies are means to
overcome the constraints and add to the firms learning process/
III. Measuring Technology Development
Not all countries need to be on the cutting age of global technological advance, but
every country needs the capacity to understand and adapt global technologies for local needs. It
is often mistakenly assumed that technology transfer and diffusion are relatively easy, that
developing countries can simply import and apply knowledge from outside by obtaining equipment, seeds and pills. But for firms or farms to use a new technology to identify its potential
benefits, to learn it, and adapt it requires new skills and the ability to learn and develop new
skills with ease (Lall, 2000b). For example, a study from Thailand shows that 4 years of
education triples the chance that a farmer will use fertilizer effectively (Lipton et al., 2001).
Furthermore, with todays rapidity of technological advance, the skill and knowledge
required is the adaptability to master new technology continuously.
Beyond the capacity to use or adopt new techniques, developing countries also need
capacity to invent and adapt new technologies. Global markets will not develop cures for
malaria, cheap wireless computers, or pest-resistant cassava products with huge gains for
the well-being of poor people but not much prot potential. Poor countries need to foster their
own creativity to use both local and global knowledge and science to find technological solutions
to their development problems. Centers of excellence in the South can do much to produce
technology tools for tackling poverty.
There is a long history of efforts to develop science and technology in developing
countries. In the network age, nurturing technological creativity and access to global
technologies requires flexible, competitive, dynamic economic environments, private and public
sector institutions, and a mini- mum of physical infrastructure. Three kinds of capacity are
particularly critical in this new environment. First, technological change dramatically raises the
premium every country should place on investing in the education and training of its people. And
in the network age, primary education will not suffice: the advanced science and engineering
skills developed in secondary and tertiary schools, as well as vocational and on-the-job training,
are increasingly important capacities. Second, the capacity to develop policies that manage
technology such as intellectual property rights as well as the risks for socio-economic
development, the environment and health. Third, the capacity to be connected to and participate
in global technology development networks.
A number of developing countries, or parts of them, are well connected to global
networks. Concentrated in North America, Western Europe and Japan, global hubs of
innovation are emerging in developing countries such as those in Bangalore (India), El Ghazala
(Tunisia), Sao Paolo (Brazil), and Gauteng (South Africa). Among the 46 top global hubs ranked
by the Wired magazine ranking, nine are in Asia, two in South America, and two in Africa
(Hillner, 2000). Developing countries are competitive in global markets for technology intensive
products. Korea, Singapore, China, Mexico, Malaysia are among the top 15 exporters of hightechnology products, and outpace Ireland, Canada, Sweden and other long industrialized
countries. Private sector investments in research-based technology sectors are increasing
(Chako, 2001). Migration creates diaspora, which in turn creates business networks. Take the
strong link between Silicon Valley and Bangalore, built on the Indian diaspora. A global labour
market is in the making in skill-intensive professions, and the diasporas strengthen the social
ties in economic networks as they invest at home, but also facilitate contacts for market access
(Kapur, 2001).
Most signicantly, public and private sector efforts are producing breakthroughs in
adaptations that meet the needs of human development, from the public initiative to develop a
low-cost computer in Brazil to Indias simputer, a $300 computer that is wireless and runs on
batteries, to malaria treatment in Vietnam that combines traditional herbal knowledge with
modern science (WHO, 2000; Simputer Trust, 2000; Kirkman, 2001).
When a country reviews its technology policies, a useful starting point is a realistic
assessment of its current situation in technological progress. The Technology Achievement
Index (TAI), a composite index of technological achievement, rejects the level of technological
progress and thus the capacity of a country to participate in the network age. A composite index
helps a country situate itself relative to others, especially those farther ahead. Many elements
make up a countrys technological achievement, but an overall assessment is more easily made
based on a single composite measure than on dozens of different measures. Like other
composite indices in Human Development Reports such as the Human Development Index
(HDI), the TAI is intended to be used as a starting point to make an overall assessment, to be
followed by examining different indicators in greater detail.
The index aims to capture technological achievements of a country in four dimensions:
creating new technology; diffusing recent innovations; diffusing existing technologies that are
still basic inputs to the industrial and the network age; and building a human skill base for
technological creation and adoption.
The index focuses on outcomes and achievements rather than on effort or inputs such
as numbers of scientists, R&D expenditures, or policy environments. This is because the causal
relationship between these inputs and outcomes are not well known. For example, does a larger
number of scientists lead to more output in technological advance? Do countries that spend
more on R&D achieve more?
These approaches differ from some other indexes of technological advance that have
been developed. The Technology Index published in the Harvard Competitiveness Reports
focuses on the enabling policy environment for technological innovation and diffusion.2 The
Index of Technological Progress developed by Rodriguez and Wilson focuses only on
information telecommunications technologies.
The TAI is not a measure of which country is leading in global technology development,
but focuses on how well the country as a whole is participating in creating and using technology.
Take the US (a global technology power- house) and Finland. The US has far more inventions
and Internet hosts in total than does Finland, but it does not rank as highly in the index because
in Finland the Internet is more widely diffused and more is being done to develop a
technological skill base throughout the population.
Two particular concerns influenced the design of this index.
First, the concern to make it as relevant as possible for the broad range of the worlds countries,
especially developing countries with low levels of technological advance, and to be able to
distinguish amongst these countries. Large proportions of people in these countries still do not
have access to older technologies such as the telephone, electricity, agricultural machines, or
motorized transport. It was important to include a broad range of new and old technologies.
Second, the concern to be of direct policy relevance to the challenges faced by a wide range of
countries.
Components of the Index
The TAI focuses on four dimensions of technological capacity that are important to reap
the benefits of the network age. These indicators relate to important technology policy
objectives for all countries, regardless of their level of development.
Creation of Technology. Not all countries need to be at the leading edge of global
technological development, but the capacity to innovate is relevant for all countries and
constitutes the highest level of technological capacity. The global economy gives big rewards
to the leaders and owners of technological innovation. All countries need to have the capacity
to innovate because the ability to innovate in the use of technology cannot be fully developed
without the capacity to create, especially to adapt products and processes to local conditions.
Innovation occurs throughout society, in formal and informal settings, although the current
technology transfer can be defined broadly as (1) the spatial translation across national
boundaries of (2) any of the aggregate purposively designed or evolved ways and means for (3)
benefitting enhanced human manipulation of production and/or the satisfaction of human needs
and desires through (4) the rational organization of human instrumental control over the material
symbolic environment.
Technology transfer may not always involve the transfer of machinery or physical
equipment. Practical knowledge can also be transferred through training on how to effectively
manage technological processes and changes. This inclusive view of technology transfer is
adopted in this work.
Technology transfer entails much more than just sending some machinery and starting it
up. Indeed, the key to successful technology transfer is adapting the technology to its new
environment or adapting the environment to it. All the material and non-material elements of
culture, from language, habits and religion to tools and crafts, are open to unilateral transfer or
bilateral exchange. The procedure by which this transfer is brought about ranges from peaceful
exchange, trade and migration to espionage, war, and subjugation.
suggestions for other possible commercial applications of the technology. In-house seminars
and group discussions should be actively organised and supported by all scientists to
encourage analysis and support or development of ideas.
After refining theories arising from the technology innovation, the scientist should submit
research proposals communicating the concept to the appropriate funding agency. Such
proposals should include plans as to how the research will in fact be applied. Scientists need to
be proactive in suggesting end uses for the technology they have created (Risdon, 1992).
Examples of Key Actions:
Idea of management practice or product innovation
Developing diagrams of technology innovation
Discussing theories with colleagues
Examples of Indicators of Transfer:
Display of technology diagrams.
Presentations communicating technology.
Research proposals advocating technology.
During the third phase of the process decisions need to be made concerning who needs
and can potentially benefit from the technology. The people involved in the targeting technology
phase would be scientists and marketing personnel. These specialists need to be aware of
factors such as cost, convenience, etc. which influence users' acceptance of new technology or
factors which might serve to prevent the adoption of technology. A multitude of factors for socioeconomic considerations for targeting technology change have been encompassed in models
by Doherty (1990) and Knudson (1991). For further study, Swanson, Sands, and Peterson
(1990) conducted an international study analysing the influence different marketing systems had
on technology acceptance by potential users.
Indicators of transfer for this phase would be the interactions of science, business, and
marketing personnel to "brainstorm" technology acceptance considerations. Grundy and King
(1992) advocate the use of a strategic planning process to steer the decision-making operation.
Examples of Key Actions:
Deciding characteristics of potential consumers.
Targeting consumers with prescribed traits.
Estimating number of prospective users.
Examples of Indicators of Transfer:
Reports of research results to key business leaders.
Communication with potential consumers.
Negotiation of potential acceptance barriers.
Kaimowitz, Snyder, and Engel (1989) counsel using a variety of communication channels to
stimulate public awareness and understanding of science or technology.
Examples of Key Actions:
Analysing demographic profile of anticipated consumers
Preparing information-educational materials
Transmitting information through mass media
Examples of Indicators of Transfer:
Organise and categorise market constituency
Production of educational materials
Contacts with a variety of communication channels
harm. Guidelines for evaluating different types of technology innovations are proposed by
Cummings (1990). Assessing technology transfer effectiveness generally requires specific
criteria which can provide a basis for measuring the extent to which key actions have been
attained. The method of defining specific criteria for indicators of transfer is essentially moving
from broad to specific actions. The stronger the indicator of transfer, the more useful the
indicator is for making decisions on present and future public good science funding. The
technology transfer process ends when the scientists reports the evaluation findings back to the
funding agency.
Examples of Key Actions:
Establishing socio-economic benefits
Establishing environmental benefits
Establishing evaluation criteria
Examples of Indicators of Transfer:
Document % of consumers satisfied with technology
Document benefits acquired from technology
Report evaluation results to funding source
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