On semi-industrialized countries and the acquisition of advanced technological capabilities

Abstract

The last decades have witnessed a breaking down of the hitherto quasi-monopoly in industrial and technological development held by highly industrialized countries. Man-made changes in comparative advantage due to rapid accumulation of human capital, development of technical institutions and public policies in support of enterprise development and innovation, have led to the emergence of advanced technical capabilities in a number of semi-industrialized countries. Study of selected instances of their technological achievement shows that they cannot be adequately interpreted as necessarily requiring the working of a well-integrated national innovation system. They seem to be instead path, or process, dependent and determined by the circumstantial convergence of requisite skills, appropriate institutions and supportive public policies.

Keywords:

• Industrialization
• Technology
• Semi-industrialized countries
• Innovations

Acknowledgements

Revised version of a paper written while the author was a Visiting Fellow at ICER, Turin. ICER's support is gratefully acknowledged. Comments by E. Londero, H. Schwartz, M. Syrquin, R. Teitel and two anonymous referees are greatly appreciated. Remaining errors are of the author's sole responsibility.

Notes

Exceptions obtain, of course. As highly developed a country as Japan has failed so par in its attempts to set-up an internationally efficient aircraft industry.

If a lower cut-off point say, of 20–25 billion dollars in manufacturing value added was adopted, South Africa would be the only sub-Saharan Africa country making the cut.

Poland has been recently admitted to the European Union.

Thirty-five represents a varying proportion of the total number of countries reporting data for each indicator. These numbers vary between 87 for the first seven indicators, to 65, and 60, respectively, for the last two.

The technological classification of manufacturing value added is given in Table A.2, Annex, UNIDO, 2002, 2003. Industries considered to be ‘medium- and high-tech’ are 342, 351, 352, 356, 37, and 38 (excluding 381), according to the ISIC revision 2 classification.

The technological classification of exports, including the listing of high and medium-tech. exports according to SITC revision 2 classification, is given in Table A.1, Statistical Annex, UNIDO, 2002, 2003.

Meaning, of course, that they are close to the top performers.

Amsden (1989) and Wade (1990) privilege strategic public interventions as key reasons for their success, whereas World Bank (1993) considers the government interventions as having been mainly directed to complete markets or improve their functioning.

It is also worth noting that entering the new millennium, the most outstanding economic performances belong to China and India, two large, subcontinental economies, with a need to supply huge domestic markets, that have recently adopted economic liberalization policies. China's growth strategy is, nevertheless, strongly dependent on reaching world export markets.

Unique among developing countries, Argentine scientists have earned three Nobel prizes: in medicine and physiology by G. Houssay in 1925, in chemistry by L.F. Leloir in 1970, and again in medicine and physiology by C. Milstein in 1984.

Information from La Nací2000) Martinez Vidal, undated, INVAP web through page, and Capdevila (2002).

In contrast, Mexico has its automotive industry set-up mostly to supply the North American market within the framework of the NAFTA.

Hess (1997) EMBRAER webpage, Goldstein and McGuire (2004), Botello (2005).

See Goldstein and McGuire (2004) regarding the Canada/Bombardier versus Brazil/Embraer conflict over export subsidies at the World Trade Organization (WTO).

The level of real protection against imports was considerably higher than the nominal tariffs as other duties and tariffs, not specific to the aircraft industry, also applied.

According to Mowery (1987), the Piper licensing agreement only took place after EMBRAER's success with the Bandeirante and, similarly, the agreement with Italian firms for the production of the AMX military trainer plane was signed, because EMBRAER had already shown the capacity to produce its own version of a military training plane.

The privatization path followed by EMBRAER seems to go against a recent international trend toward greater participation by the public sector in the industry. The Airbus consortium, for example, now competing strongly with Boeing and other US firms, receives subsidies, protection, and capital investments from the governments of European participating firms. Moreover, most consortium participating firms are nationalized. Saab, besides being the sole manufacturer of military aircraft for the Swedish Air Force, also receives public financial support for R&D. Finally, Canadair and De Havilland Canada (DHC) were both nationalized to retain a military aircraft industry in Canada.

Based on Norman (1997) UNDP-WIDE.

See Antonelli (1991) for a discussion of the diffusion of advanced telecommunications technologies in developing countries.

Westphal (2002) provides a detailed and extensive argument about the importance of exports in the economic development strategy of both Korea and Taiwan.

Based on Ross (1997) ACER webpage.

Because of its dependence on imported oil, and in spite of the relative success of the gaso-hol program, Brazil is now committed to a significant nuclear energy program.

As achieved, for instance, by Hirschman (1958) in his The Strategy for Economic Development.

The book edited by Nelson includes national studies for nine advanced and five developing countries that do not share a common theme or outline. The only attempt at classification is by grouping the advanced countries according to the size.

Additional information

Notes on contributors

Simón Teitel

E-mail: [email protected]