market-orientation.pptVIP

KEF VII: Technology Absorption by Innovative SMEs Concluding Remarks F. Montes-Negret Director, Private and Financial Sector Europe and Central Asia, The World Bank June 19, 2008, Ancona, Italy Agenda Globalization Technology Absorption Technology Absorption Channels Clusters Global Supply Chains Competitiveness Human Capital Responsive HEIs Industry Regional Innovation Partnerships Quality Standards Start-Ups Spin-Offs Technology diffusion in the developing world Globalization has been a main driver of technological progress; The technology gap between rich and poor countries has narrowed -- but remains large; Progress in developing countries reflects the absorption of pre-existing technologies – not at-the-frontier inventions; Technology diffusion across countries has picked up, but diffusion within countries remains slow and penetration rates uneven; Persistent weakness in technological absorptive capacity may constrain further technological progress. Key features of a pro-technology policy stance No detailed roadmap for promoting technological progress, but certain policy directions are indicated: Maintain openness to trade, foreign direct investment and participation of diaspora Further improve the investment climate so as to allow innovative firms to grow and flourish Improve basic infrastructure (roads, electricity, telephony) Raise the quality and quantity of education throughout economy not just major centers Emphasize technology diffusion by reinforcing dissemination systems and the market-orientation of RD programs Technology progress is mainly about absorbing and adopting technologies developed elsewhere Technological Flows Unbundling of Productive Activities Technology transfer strongly affected by North/ South firm interaction; Unbundling of production has created extraordinary new opportunities for technology diffusion; Technological flows no longer unilateral; Many countries or part of countries still excluded. Policies for K Absor