By H. Romijn
An authoritative exam of ways small agencies in constructing international locations collect technological power - the data and talents required to function know-how successfully and to conform it to neighborhood stipulations. It fills a spot within the demonstrated literature on technological strength, which has missed the small-scale zone regardless of the $64000 function it performs in employment iteration. the writer develops a strategy for a quantitative evaluation of the educational technique, utilizing case fabric from the small-scale capital items zone in Pakistan's Punjab Province.
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Extra info for Acquisition of Technological Capability in Small Firms in Developing Countries
39 However, there could be another important reason for the neglect of small firms in the capability literature. Capability building in small firms may be desirable from the point of view of both productive employment expansion and generation of technical progress, but that does not mean that the phenomenon actually occurs. Perhaps, the present-day economic conditions in developing countries are such that small firms do not have any incentives for engaging in technological effort, or that they simply do not have the potential for technological upgrading even if they had the inclination.
A firm's technological capacity and its requirements are to some extent unique, and it grows by integrating new pieces of technological knowledge into its own idiosyncratic knowledge-base. In-firm efforts are required because no technology supplier can undertake this task for the firm. Technologies also tend to have environment-specific elements and simple replication across different environments is usually insufficient to ensure adequate functioning. There is usually only imperfect advance knowledge about which specificities will turn out to be important in a particular local setting and which local adaptations and modifications will work in a particular context (Dahlman and Westphal, 1981).
This index is therefore bigger when a country produces a wider range of capital goods andlor when it produces goods that have higb skill requirements. A regression analysis carried out with a capability measure based on UNIDO's work points to the significance of three factors that are believed to be important determinants of cross~country differences in national technological capability. namely market Importance of Technological Capability 43 size, the stock of scientists and engineers and the trade policy orientation of countries (James and Romijn, 1997).
Acquisition of Technological Capability in Small Firms in Developing Countries by H. Romijn