The Diffusion of Technology

1. The Diffusion of Technology Volti Chapter 5

2. How are Technologies adopted by individuals and organizations that actually put them into use? • The International Diffusion of Technology • Myth - Technology is largely result of one’s own people --> Technological Nativism • No Technologically dynamic nation is autonomous from Technologies of other nations • 1500's - China produced most Technology • 1500 -1700's - Europe leads world in Technological advances • Yet many of these Technologies were the continuation of earlier advances in technology from China and elsewhere • United States - heavily dependent on Technologies of other countries since its inception • Even advances that originated in U.S. are often owed to immigrants • Bakelight- (Leo Baekeland- Belgium) • Television Camera- (Vladimir Zworykin- Russia)

3. How are Technologies adopted by individuals and organizations that actually put them into use? • Sharing of Technology isn’t as simple as merely transplanting Technology from place to place • Technology is a system - many components required to make it work, resources vary from country to country • Technology needs support of human beings who understand its workings • This may vary from country to country "A country (or an individual firm) that draws on technologies developed elsewhere is spared the expense of ‘reinventing the wheel.’ But making effective use of imported technologies - even if only direct copying is Required - often requires a stock of indigenous skill that cannot always be easily found."

4. How are Technologies adopted by individuals and organizations that actually put them into use? • Technologies shared between countries can be used for very different purposes • China - Gun Powder - used medicinally for centuries - passed on to Europe • Europe - within short time using it for cannons and firearms • When Technology is transferred from one country to another, modifications are most likely required for Technology to work.... Thus it isn’t the exact same Technology • Japan and Steel Production - Japanese tried to apply Dutch steel production but Had to make many modifications. In particular, the special characteristics Of Japanese coal and iron ore required special modifications

5. However, the assumption that Technologies of developed nations are essential to economic and Technological modernization of undeveloped countries is problematic • Not all countries have equal resources (human and material) • Even if Technologies can be transferred the results are not always desirable • Pakistan - introduction of tractor - replaces worker - 40% unemployment rate • Workers migrate to cities - dire poverty results - per acre crop yields hardly increased at all.

6. Equal use of Technologies can have devastating impact • U.S. (pop. 250 million) - one car/ 2 people • China (pop. 1 billion+) - one car/ 500 people

7. Could we afford to equalize resources w/out resource and environmental breakdown??? • Technology of one country may not makes good economic sense for another country • Poorer countries need Technologies that create human jobs, not replace human jobs • Technologies are often chosen by small power groups that represent their interests rather than the interests of the country

8. Technology cannot be developed strictly for economic motives: values and morality of culture play key role.Selection of Technology reflects larger issues - social and political, as well as economic.

9. Business Firms and Technological Diffusion • Diffusion similar to that which occurs from country to country • Factors that influence diffusion: • Relative advantages over existing Technology • Compatibility w/ existing values of firm • Ease/difficulty of understanding and applying new Technology • Ease of experimentation with new Technology • Extent to which positive results appear • People with knowledge of Technology are KEY to diffusion of Technology • As with countries, Technology that works in one environment may fail in another

10. Economics Motives and Technological Transfer • Expectation of cost and benefits strongly influences speed at which Technology is diffused • Mechanical Reaper - pre reaper - grain harvested manually - LABOR INTENSIVE • Mechanical Reaper introduced (1830's) but diffused very slowly until 1850's • 1850's - Crimean War - increase of grain prices - motivation to produce > grain • More grain - bigger farms - Mechanical reaper makes sense to buy • Qualifications for Mechanical Reaper - may not have been widely used because it required refinement in order to be of practical use to farmer

11. Economic motive is important BUT it is still only a presumption of the likely success of a Technology • It often takes a long time for Technology to move from lab. Feasibility to commercial value: • Freon refrigerants - 1 year • Zipper - 27 years • Mechanical cotton picker - 53 years • Fluorescent lamp - 79 years

12. The "Not Invented Here" (NIH) Syndrome • Risky nature of Technological innovation blocks the diffusion of new Technologies • "The status quo is a hell of a lot easier than making changes." Henry Ford

13. Efforts to Restrict the Diffusion of Technology "The exclusive possession of a particular Technology can confer great advantages on those that have it." • Venice - 16 cent. Glass makers - assassins sent out to kill expatriate glass makers • England - 1719 - illegal for skilled artisans to emigrate • Present Day - strict rules against exporting technologies Despite regulations, diffusion of technology difficult to regulate

14. Patents and the Diffusion of Technology • Patents confer exclusive use of an invention and are, obviously, highly desired • Patents can stifle Technological development • Patents can help diffuse Technological knowledge - patent makes public the knowledge • Ideally, patents make invention known and available to public rather that just inventor • Patent isn’t an iron-clad protection, merely a "license to sue" • Patents often quickly out-moded by Technological advance • Advantages/disadvantages of patent difficult weigh over the other