Lecture Development policy: Technology and innovation

Lecture Development policy: Technology and innovation includes content: Japan’s technology policy as a developing country; Technology, innovation and development; Innovation and fragementation of production; Barriers to innovation in developing countries;... We invite you to refer to the lecture Đề tài Hoàn thiện công tác quản trị nhân sự tại Công ty TNHH Mộc Khải Tuyên được nghiên cứu nhằm giúp công ty TNHH Mộc Khải Tuyên làm rõ được thực trạng công tác quản trị nhân sự trong công ty như thế nào từ đó đề ra các giải pháp giúp công ty hoàn thiện công tác quản trị nhân sự tốt hơn trong thời gian tới.

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FULBRIGHT SCHOOL OF PUBLIC POLICY AND MANAGEMENT

Technology and Innovation

Development Policy

Summer 2023

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Japan’s technology policy as a developing country

• Japan opened up to the world with the Meiji

Restoration in 1868

• Imports of foreign technology and training for

engineers to use it in local firms

in mining, shipbuilding, machinery and textiles

Russia and imperial powers in China

technology to Japanese firms

engineering and licensing technology

Toyota AA, first production car in 1936

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What is innovation?

• Adoption of new or significantly improved product (good or service)

• A new or improved or process or marketing method

• A new organizational structure or business practices, workplace

organization or external relations

• Creating, adopting, adapting technologies

• Upgrading technological capacity with the firm

• Imitating or importing existing technologies

• Adapting existing products and production methods to the needs of local

producers and customers

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Technology, innovation and development

dependent) and therefore Innovation is highly concentrated in rich countries,

linked to large, global firms.

• Small Nordic countries have not produced many technological breakthroughs, but they

have become competitive through efficient diffusion of new ideas.

• China now a leader in renewable energy although these technologies were invented

elsewhere

• some require less up-front investment or previous experience/expertise

• may spread more rapidly in developing countries.

• Skilled workers from FDI firms can be a source of innovation for domestic firms

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Innovation and fragementation of production

• Suppliers and assemblers used to be

located near each other, and often

connected through ownership and

movement of staff

• Manufacturing is now fragmented:

• Digitization: sharing of precise

information in real time in automated

processes

• Trade liberalization: lowering of tariffs

and other trade costs

• Containerized shipping: lowered costs

of moving goods long distances

Automobile assembly: 30,000 parts

• OEM: designs, assembles, markets

• Tier 1: Supplies directly to OEM, close relationships

• Tier 2: Specialists in materials and machinery required by Tier 1

• Tier 3: Producers of metal, plastic and leather

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Why is fragmentation of production profitable?

• Research and development, design, management of supply chain retained by system

integrator firms

• System integrators pressure suppliers to continually improve quality and reduce costs

• Cascade effect: Tier 1 suppliers, also huge companies, pressure their supplier for lower

costs and better quality

• Labor-intensive processes sent to countries with lowest wages

• Companies specialize in specific components or processes: develop capabilities and realize

economies of scale

• TSMC specializes in microchip fabrication (pure-play foundry): they don’t design chips,

but no one makes chips better or cheaper

• Wipro: Indian software and project management company that write much of the

code that is used in our cars, online banking and appliances

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Barriers to innovation in developing countries

• Factors external to firms

• Political instability, corruption, criminality

• Monopoly or other barriers to entry of new firms the reduce competition

• Absent or fragmented National Innovation System

• Factors internal to the firm

• Domestic firms more likely to invest in R&D than foreign firms

• Level of education, experience of workers can hold back innovation

• Access to finance

• Access to knowledge networks

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National Innovation Systems

• Christopher Freeman: Innovation in Japan arises from interactions between

organizations and networks.

• Technological capacity as the crucial factor in national competitiveness: Exports

depend on innovation, not just prices

• Three facets of NIS:

• Science policy: Production of scientific knowledge for the economy, security, health and

environment

• Technology policy: Focus on strategic technologies with impact on economic and social

objectives, for example energy transition

• Innovation policy: Diffusion of science and technology through society, creating networks,

feedback loops, for example national research institutions, universities, professional

associations, business associations, specialized financial institutions

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• Science and Technology Strategic Plan

for 2004–2013 for first time includes

firms

• Recognized role of innovation in

competitiveness.

• Several industrial development banks

established: Industrial Finance

Corporation of Thailand (IFCT), SME

Bank, Small Industry Credit Guarantee

Corporation (SICGC) and Innovation

Development Fund (IDF).

• Cluster strategy to encourage local

firms to collaborate

Policy objective Instrument

Increase technological capacity of Thai firms

R&D tax incentives;

Soft loans for R&D investments;

Industrial Technology Assistance Program;

Creation of excellence centers;

R&D tax incentives for training Strengthen local initiatives The Village Fund;

The People’s Bank Upgrade science and

technology management system

Mobility of staff between policy agencies

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• Larger, more advanced firms benefit from financial support and

networking, but weaker firms cannot participate

• Smaller, less capable firms rely primarily on testing facilities and

quality control from government

• Still heavily biased to science and technology rather than adaptation

and implementation

• Needs more emphasis on Learning by Doing

• Networking above the local level

• More informal training with suppliers and users rather than rely solely on

university-based training

Tiêu đề	Technology and Innovation
Trường học	Fulbright School of Public Policy and Management
Chuyên ngành	Development Policy
Thể loại	Essay
Năm xuất bản	Summer 2023

Định dạng
Số trang	21
Dung lượng	732,18 KB