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Technology

Technology. Technology is a pool of freely available information used to produce goods of value (Public good). . Technology. Technology is a pool of freely available information used to produce goods of value (Public good). Technology can also be defined as the knowledge of a process . .

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Technology

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  1. Technology Technology is a pool of freely available information used to produce goods of value (Public good).

  2. Technology Technology is a pool of freely available information used to produce goods of value (Public good). Technology can also be defined as the knowledge of a process.

  3. Technology Technology is a pool of freely available information used to produce goods of value (Public good). Technology can also be defined as the knowledge of a process. This process could be the process of producing a commodity, the process of rendering a service, or the process of managing an institution.

  4. Technology Technology is a pool of freely available information used to produce goods of value (Public good). Technology can also be defined as the knowledge of a process. This process could be the process of producing a commodity, the process of rendering a service, or the process of managing an institution. Therefore it is a dynamic rather than a static concept.

  5. Technology Technology is a pool of freely available information used to produce goods of value (Public good). Technology can also be defined as the knowledge of a process. This process could be the process of producing a commodity, the process of rendering a service, or the process of managing an institution. Therefore it is a dynamic rather than a static concept. That is, it is a continuously evolving process which requires adaptation and modification on an ongoing basis.

  6. Technology Transfers Technology transfers occur through: • Trade (goods and services as well direct sales of factories and know-how) • Lifestyle (TV, Movies, Internet) • Business Methods

  7. Technology: sectoral and regional impact Technology transfer impacts: • Urban communities • Rural areas

  8. Resource Bases for Industrialization • Internal public resources include government investments to create infrastructures and to deliver essential services

  9. Resource Bases for Industrialization • Internal public resources include government investments to create infrastructures and to deliver essential services • Internal private resources, comprising local businesspeople and entrepreneurs

  10. Resource Bases for Industrialization • Internal public resources include government investments to create infrastructures and to deliver essential services • Internal private resources, comprising local businesspeople and entrepreneurs • External public resources include supranational institutions such as the UN

  11. Resource Bases for Industrialization • Internal public resources include government investments to create infrastructures and to deliver essential services • Internal private resources, comprising local businesspeople and entrepreneurs • External public resources include supranational institutions such as the UN • External private resources: the contributions of international corporations

  12. Technology Transfer Positive Negative Product Sales (Consumer) Upgrades Consumption know how/consumer education Affordable only to affluent segments Product Sales (Industrial) Upgrades production process technologies; technician/engineering skills; lowers per unit production costs/prices Displaces workers with more intensive use of capital Wall-Mart effects on the local businesses. Licensing, technology agreements; corporate R & D efforts Broadens, elevates technology bases and workforce vocational and scientific skills Banking and Financial institutions Mobilizes savings to create investment markets for public/private sector-stock market capital; consumer/installment credit for individuals and business Only the wealthy benefit in the short term and leads to power concentrations; possible unwanted foreign influences encouraging buyers to purchase goods beyond their means. Technology Transfers: Positive and Negative Effects

  13. Local procurement of materials and components Stimulus for private enterprise/local initiatives Easier for other foreign firms to meet procurement quality requirements Establishment of wholesale/retail distribution systems Creates distribution infrastructure/expertise; increases customer exposures to modern goods & services Foreign control over distribution; consumer exposed to products that are beyond their means to purchase Worker training in technologies and production know how Upgrades labor skills and vocational bases For a minority only; majority have insufficient education Management training in organizational know how/methods Increased managerial education and efficiency Only educated elites benefit Financial and accounting skills Planning and budgetary control Technology transfer positive negative

  14. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions: Democratization

  15. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions:

  16. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: • Market oriented decision making

  17. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: • Market oriented decision making • Infrastructure must be replaced to accommodate the new environment.

  18. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: • Market oriented decision making • Infrastructure must be replaced to accommodate the new environment.

  19. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: • Market oriented decision making • Infrastructure must be replaced to accommodate the new environment. • Tribal system would be replaced with individualistic modes operandi

  20. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: • Market oriented decision making • Infrastructure must be replaced to accommodate the new environment. • Tribal system would be replaced with individualistic modes operandi • Migration to Urban areas

  21. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: • Market oriented decision making • Infrastructure must be replaced to accommodate the new environment. • Tribal system would be replaced with individualistic modes operandi • Migration to Urban areas • Production base changes from Agriculture to industrial

  22. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: • Market oriented decision making • Infrastructure must be replaced to accommodate the new environment. • Tribal system would be replaced with individualistic modes operandi • Migration to Urban areas • Production base changes from Agriculture to industrial • Landlords become share-holders

  23. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: 3-- Changes in cultural institutions • Family systems change from extended to nuclear

  24. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: 3-- Changes in cultural institutions • Family systems change from extended to nuclear • Hereditary and seniority social class systems to economically-based (income, wealth)

  25. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: 3-- Changes in cultural institutions • Family systems change from extended to nuclear • Hereditary and seniority social class systems to economically-based (income, wealth) • Gender orientations: patriarchal to egalitarian

  26. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: 3-- Changes in cultural institutions • Family systems change from extended to nuclear • Hereditary and seniority social class systems to economically-based (income, wealth) • Gender orientations: patriarchal to egalitarian • Religiosity: declines with industrialization

  27. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: 3-- Changes in cultural institutions • Family systems change from extended to nuclear • Hereditary and seniority social class systems to economically-based (income, wealth) • Gender orientations: patriarchal to egalitarian • Religiosity: declines with industrialization • Education systems: from informal to formal

  28. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: 3-- Changes in cultural institutions • Family systems change from extended to nuclear • Hereditary and seniority social class systems to economically-based (income, wealth) • Gender orientations: patriarchal to egalitarian • Religiosity: declines with industrialization • Education systems: from informal to formal • Cultural homogenization: the Melting Pot Society

  29. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions: 3-- Changes in cultural institutions • Family systems change from extended to nuclear • Hereditary and seniority social class systems to economically-based (income, wealth) • Gender orientations: patriarchal to egalitarian • Religiosity: declines with industrialization • Education systems: from informal to formal • Cultural homogenization: the Melting Pot Society • Social behaviors: conformist to individualistic behaviors

  30. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions 3-- Changes in cultural institutions 4-- Change in Social Behavior • Conformist to Individualistic, We to Me

  31. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions 3-- Changes in cultural institutions 4-- Change in Social Behavior • Conformist to Individualistic, We to Me • Religion loses its grip

  32. Economic Development Effects on Institutions and Behaviors 1-- Change in Political Institutions 2-- Change in Economic Institutions 3-- Changes in cultural institutions 4-- Change in Social Behavior • Conformist to Individualistic, We to Me • Religion loses its grip • More delineated (defined) rules of law.

  33. Economic Development Effects on Institutions and BehaviorsIndividual Changes in Values and Behaviors • Interpersonal behaviors: insider-outsider distinctions break down

  34. Economic Development Effects on Institutions and BehaviorsIndividual Changes in Values and Behaviors • Interpersonal behaviors: insider-outsider distinctions break down • Individual values: Breakdown of traditional values (formality, trust, dislike of change, risk, fatalism, conformism) to modern values (low levels of trust, formality; preferences for efficiency, change, risk; self-help, individualism encouraged)

  35. Economic Development Effects on Institutions and BehaviorsIndividual Changes in Values and Behaviors • Interpersonal behaviors: insider-outsider distinctions break down • Individual values: Breakdown of traditional values (formality, trust, dislike of change, risk, fatalism, conformism) to modern values (low levels of trust, formality; preferences for efficiency, change, risk; self-help, individualism encouraged) • How Individuals Adapt to Industrializing Societies: The “Rat Race” Emulation Cycle:Individuals migrate to towns and become committed to jobs and urban lifestyles.

  36. 1. Industrializing society uses economic criteria to determine social position Migration to towns, young workers join industrializing society 6. Work hard to emulate of consumption patterns of social superiors 2. Work becomes “means to the end” work ethic cultivated “Demonstration Effect” Exposure to new products, media, lifestyles 5. Commitment to industrial society increases 3. Wages allow new consumption patterns to form and 4. Materialistic behaviors take hold Impetus for Sustained Development: The “Rat Race” Emulation Cycle

  37. Developmental Effects:Industry Behavior • Supply chain development: orderly integration of suppliers, manufacturers and distribution systems

  38. Developmental Effects:Industry Behavior • Supply chain development: orderly integration of suppliers, manufacturers and distribution systems • National trade policies: From protectionist to free trade economies

  39. Developmental Effects:Industry Behavior • Supply chain development: orderly integration of suppliers, manufacturers and distribution systems • National trade policies: From protectionist to free trade economies • Local labor costs and availability: From abundant low cost unskilled labor to high cost skilled labor

  40. Developmental Effects:Industry Behavior • Supply chain development: orderly integration of suppliers, manufacturers and distribution systems • National trade policies: From protectionist to free trade economies • Local labor costs and availability: From abundant low cost unskilled labor to high cost skilled labor • Infrastructure development: • Physical: roads, ports

  41. Developmental Effects:Industry Behavior • Supply chain development: orderly integration of suppliers, manufacturers and distribution systems • National trade policies: From protectionist to free trade economies • Local labor costs and availability: From abundant low cost unskilled labor to high cost skilled labor • Infrastructure development: • Physical: roads, ports • Financial: banking systems

  42. Developmental Effects:Industry Behavior • Supply chain development: orderly integration of suppliers, manufacturers and distribution systems • National trade policies: From protectionist to free trade economies • Local labor costs and availability: From abundant low cost unskilled labor to high cost skilled labor • Infrastructure development: • Physical: roads, ports • Financial: banking systems • Social: government support systems (cost to employers in the form of taxes)

  43. Developmental Effects:Industry Behavior • Supply chain development: orderly integration of suppliers, manufacturers and distribution systems • National trade policies: From protectionist to free trade economies • Local labor costs and availability: From abundant low cost unskilled labor to high cost skilled labor • Infrastructure development: • Physical: roads, ports • Financial: banking systems • Social: government support systems (cost to employers in the form of taxes) • Education: training managerial and technical support. • Government incentives, services, and influences determine the direction and speed of development.

  44. Developmental Effects:Industry Behavior • Supply chain development: orderly integration of suppliers, manufacturers and distribution systems • National trade policies: From protectionist to free trade economies • Local labor costs and availability: From abundant low cost unskilled labor to high cost skilled labor • Infrastructure development: • Physical: roads, ports • Financial: banking systems • Social: government support systems (cost to employers in the form of taxes) • Education: training managerial and technical support. • Government incentives, services, and influences determine the direction and speed of development. • Demand Factors

  45. Developmental Effects:Industry Behavior • Supply chain development: • National trade policies: • Local labor costs and availability: • Infrastructure development: • Demand factors • Market affluence increases: middle classes emerge

  46. Developmental Effects:Industry Behavior • Supply chain development: • National trade policies: • Local labor costs and availability: • Infrastructure development: • Demand factors • Market affluence increases: middle classes emerge • Market demand: aggregate supply > demand; as a result marketing becomes more important competitive tool to get rid of the excess supply

  47. Developmental Effects:Industry Behavior • Supply chain development: • National trade policies: • Local labor costs and availability: • Infrastructure development: • Demand factors • Market affluence increases: middle classes emerge • Market demand: aggregate supply>demand; marketing becomes important competitive tool • That means Media communications: more commercial media

  48. Developmental Effects:Industry Behavior • Supply chain development: • National trade policies: • Local labor costs and availability: • Infrastructure development: • Demand factors • Market affluence increases: middle classes emerge • Market demand: aggregate supply>demand; marketing becomes important competitive tool • Media communications:more commercial media • That necessitates urbanization: Rural to urban population movements shift demand

  49. Developmental Effects:Industry Behavior • Supply chain development: • National trade policies: • Local labor costs and availability: • Infrastructure development: • Demand factors • Market affluence increases: middle classes emerge • Market demand: aggregate supply>demand; marketing becomes important competitive tool • Media communications:more commercial media • Rural to urban population movements shift demand. This leads to • Cultural diversity decreases: more homogeneous demand

  50. Developmental Effects on Industry: Business Practices • Corporate behaviors • From small scale, harmonious, output-oriented firms to large scale, profit-oriented, competitive organizations

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