DOCSLIB.ORG

Industrial Restructuring and Innovation Policy in Central and Eastern Europe Since 1990.Pdf

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Industrial Restructuring and Innovation Policy in Central and Eastern Europe Since 1990.Pdf TECHNOLOGY GOVERNANCE Working Papers in Technology Governance and Economic Dynamics no. 23 the other canon foundation, Norway Tallinn University of Technology, Tallinn CONTACT: Rainer Kattel, [email protected]; Wolfgang Drechsler, [email protected]; Erik S. Reinert, [email protected] Industrial Restructuring and Innovation Policy in Central and Eastern Europe since 1990 1 Rainer Kattel , Erik S. Reinert and Margit Suurna, Tallinn University of Technology May 2009 1 Corresponding author, email: [email protected]. Research for this study was partially supported by the Estonian Ministry of Education and Research (targeted financing grant no SF0140094s08), the Estonian Ministry of Economic Affairs and Communication (I-PUP grant) and the Estonian Science Foundation (grants no 7577, 6703 and 8097). 1. Introduction Until very recently, economic development in Central and Eastern European (CEE) countries2 has been seen by most analysts in both academic and pol- icy circles as a largely positive if not a very positive story. For example, at the end of 2005, Business Week ran a cover story titled “Central Europe – Rise of a Powerhouse”. It has become commonplace to argue that the suc- cess of CEE development is mainly due to neoliberal economic policies (lib- eralized markets, balanced public budget, price stability, low tax burden, and strongly market oriented reforms in all socio-economic sectors) pursued by these countries since the early 1990s. In other words, CEE countries have been poster countries for Washington Consensus policies. Indeed, as we show below, during the entire decade of the1990s, industrial restruc- turing and embryonic innovation policies in CEE were largely dominated by Washington Consensus thinking. We aim to show that, first, these policies have been a double-edged sword: on the one hand enabling fast and furi- ous industrial restructuring while, on the other hand, locking CEE economies into economic activities with low value added/productivity growth and thus undermining future sustainable growth. However, the impact of accession into the European Union (EU) has been equally pivotal for industrial restruc- turing and innovation policy making in CEE countries in the 2000s and this process can be summed up as a strong Europeanization of innovation poli- cy in CEE. We aim to show, second, that also Europeanization has been largely a double-edged sword for CEE countries. Since joining the EU in 2004 or 2007, and already during the accession process, there is a strong change in innovation policies in many CEE countries towards a much more active role of the state. In this change there is a clear and strong role of EU’s structural funding, particularly the negotiations and planning that comes with it. However, these changes come with specific problems: first, there is an over-emphasis in emerging CEE innovation policies on a linear understanding of innovation (from lab to market) that is based on the assumption that there is a growing demand from industry for R&D (which is not the case because of the structural changes that took place in the 1990s via the Washington Consensus policies); and, second, increasing usage of independent implementation agencies in an already weak admin- istrative capacity environment lacking policy skills for networking and long- term planning. We argue that such Europeanization of innovation policy in CEE, while highly positive in directing CEE to reorient economic and inno- vation policies towards more sustainable growth, is in its implementation often only deepening and exasperating the existing problems of networking 2 In the context of this article, Central and Eastern European countries are the following ten most recent member states of the European Union: Bulgaria, the Czech Republic, Hungary, Estonia, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia. 2 and coordination. However, both Washington Consensus policies and the process of Europeanization created fertile ground for significant financial fragility to develop in CEE countries during the second half of the 2000s which contributed to the financial woes these countries experience in the current global recession. Underlying both Washington Consensus policies and the impact of the EU on CEE is the assumption that the best intellec- tual and policy framework to integrate CEE countries into the world econo- my and secure sustainable growth is a Ricardian comparative advantage framework that assumes that all economic integration are more or less sym- metrical and integrative. We show that this is deeply misleading and that this misunderstanding led to deep-rooted cognitive dissonance between policies employed for industrial restructuring and innovation in CEE and actual developments taking place in the private sectors of these countries. This cognitive dissonance is also one of the key reasons why financial fragility was not recognized early enough to counteract it. 2. Methodological note Following a broadly Neo-Schumpeterian approach, we assume that compa- nies innovate in order to hedge their balance sheets; that is, companies innovate in order to generate revenues and outcompete their competitors, and they do so in a number of ways, e.g. by developing new or improved products, services or by introducing organizational or marketing changes, etc. (See also OECD and Eurostat 2005). In trying to hedge their balance sheets through innovations companies rely on skills and routines they have developed, or as Alfred Chandler called this, companies rely on “learned organizational capabilities” that include technical know-how, management and marketing skill, established networks etc. (Chandler 2005; also Nelson and Winter 1982). These capabilities, however, develop and evolve in a wider context that can be called a national system of innovation that can have a huge variety of features from the legal system to particularities of education and R&D. (See in particular Freeman 1974 and 1987) We use innovation policies to denote a set of public sector efforts that aims to enable private sector upgrading in terms of technology and skills, but also in terms of a wider set of activities, such as organizational change and capabilities. In other words, innovation policies aim at changing and upgrad- ing patterns and features of private sector learned organizational capa- bilities. In what follows, we try to track the evolution of main features of CEE com- pany-level organizational capabilities and of national innovation systems since the 1990s. These concepts serve as rough approximations and heuristic devices to organize actual historical events. We do so largely by 3 using stylized facts, and we are fully aware that such an approach abstracts diverse actual developments. (See also footnote 14 below) However, we hope to show that – particularly in comparison with East Asian develop- ment – CEE countries followed a similar path since 1990 and look surpris- ingly alike. The following is divided into 4 parts: in the first three sections we depict the stylized facts of industrial upgrading, changes in the R&D system, and corresponding innovation policies in CEE since 1990. The final part of the essay summarizes the previous sections and draws conclusions about evo- lution of the main features of organizational capabilities and national sys- tems of innovations in CEE since 1990. 3. Stylized facts of CEE industrial restructuring in 1990s Perhaps the key assumption behind how Central and Eastern European countries should go about reforming their economies in the late 1980s and early 1990s was the belief that, as Martin Wolf argues, “new opportunities were at last opening up for developing countries to export manufactures and a range of relatively sophisticated services competitively” (Wolf 2007). Indeed, it can be argued that economists of almost all persuasions seemed to share one common view: globalization in the form of global financial mar- kets and trade liberalization would greatly benefit CEE countries. Globalization was seen as the main factor in delivering fast economic restructuring spurred by global capital in form of foreign direct investment (FDI) inflows. This enthusiasm was largely based on the classical Ricardian assumption of comparative advantage defined, in a classic textbook for- mulation, as follows: “trade between two countries can benefit both coun- tries if each country exports the goods in which it has a comparative advan- tage.” (Krugman and Obstfeld 2005:26) Krugman’s work in the 1990s that included economies of scale into the Ricardian framework, assumed that the mutually beneficial trade takes place between countries possessing increasing returns activities. (See Krugman and Obstfeld 2005:110-146; and Krugman 1996) Thus, as CEE countries exhibited high levels of indus- trialization at the end of the 1980s (comparable to East Asia), it seemed correct to assume that globalization would indeed greatly help these economies to restructure the industry and to become vastly more efficient in production through trade and increased competition. (See also Radosevic 1998 and Guerrieri 1998 for discussion). However, the augmented Ricardian framework failed to take into account two phenomena: first, the 1990s saw the onslaught of what has been termed a new techno-economic paradigm that completely changed the nature of industrialization and essentially stripped many maturing and 4 increasingly foot-loose industrial activities of significant (dynamic) scale economies; second, the Ricardian framework assumes that
Load more

Recommended publications
  • Kattel Et Al
    3rd International Conference on Public Policy (ICPP3) June 28-30, 2017 – Singapore Panel T06P01 Public Sector Innovation: Organizational and Institutional Trends in the Post-New Public Management Era Innovation Bureaucracy: Does the organization of government matter when promoting innovation? Author(s) Rainer Kattel, Wolfgang Drechsler, Erkki Karo All Ragnar Nurkse School of innovation and Governance, Tallinn University of Technology, Estonia; [email protected] Innovation Bureaucracy: Does the organization of government matter when promoting innovation? Abstract: Current research on how to organize the roles of government in promoting innovation converges around a rather simplified single-organization explanation: support of innovation requires either (Weberian) elite expert organizations or (Schumpeterian) fluid peripheral organizations. We show that looking at history of innovation bureaucracy, a more complex picture emerges: historically we find a rich organizational variety in how governments have organized different innovation promoting activities. We show that historically this organizational variety is, first, driven by highly diverse public-private relationships; second, the variety is of evolutionary nature; third, the diversity of organizations itself is an important factor in success and failure of innovation policies. Combining analytical lenses created by Weber and management literature on capabilities and ambidexterity, we build analytical framework to understand how organizational variety of innovation bureaucracy evolves
    [Show full text]
  • Economics 18.Qxd
    TECHNOLOGY GOVERNANCE Working Papers in Technology Governance and Economic Dynamics no. 18 the other canon foundation, Norway Tallinn University of Technology, Tallinn CONTACT: Rainer Kattel, [email protected]; Wolfgang Drechsler, [email protected]; Erik S. Reinert, [email protected] The Economics of Failed, Failing, and Fragile States: Productive Structure as the Missing Link Erik S. Reinert, The Other Canon Foundation & Tallinn University of Technology, Yves Ekoué Amaïzo, UNIDO, Vienna 1 and Rainer Kattel , Tallinn University of Technology Jnauary 2009 1 Contact authors: [email protected], [email protected] and [email protected]. The research for this paper was partially funded by the Estonian Science Foundation, grant no 6703. 1. Introduction: Lost Theoretical Insights from US Secretary of State George Marshall. More than sixty years ago, on 5 June 1947, US Secretary of State George Marshall gave a speech at Harvard University announcing what was to be called the Marshall Plan. The Marshall Plan was probably the most suc- cessful development plan in human history, re-industrializing and industrial- izing countries from Norway and Sweden in the North to Greece and Turkey in the South-East. At about the same time, a similar process based on the same principles re-industrialized and industrialized East Asia, spreading from Japan in the North-East towards the South-West. In this way a cordon san- itaire of wealthy countries was created around the communist world, stemming the communist tide that was rising at the time of Marshall’s speech. One country to benefit from the Marshall-type ideology was South Korea, a country that in 1950 was poorer (GDP per capita estimated at $ 770) than Somalia (GDP per capita estimated at $ 1057; Maddisson 2003), which today is an example of a failed state (see Figure 1 below).
    [Show full text]
  • NSE KARO.Pdf
    This article was downloaded by: [Professor Judith Clifton] On: 18 June 2015, At: 08:40 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Journal of Economic Policy Reform Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/gpre20 Economic development and evolving state capacities in Central and Eastern Europe: can “smart specialization” make a difference? Erkki Karoa & Rainer Kattela a Ragnar Nurkse School of Innovation and Governance, Tallinn University of Technology, Tallinn, Estonia Published online: 08 Apr 2015. Click for updates To cite this article: Erkki Karo & Rainer Kattel (2015) Economic development and evolving state capacities in Central and Eastern Europe: can “smart specialization” make a difference?, Journal of Economic Policy Reform, 18:2, 172-187, DOI: 10.1080/17487870.2015.1009068 To link to this article: http://dx.doi.org/10.1080/17487870.2015.1009068 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content.
    [Show full text]
  • The Baltic States and the Crisis of 2008-2011 Rainer Kattel and Ringa
    The Baltic States and the Crisis of 2008-2011 Rainer Kattel and Ringa Raudla1 This essay explores how the Baltic republics responded to the crisis of 2008–2011.We argue that while there are significant differences in how the Baltic economies responded to the crisis, these responses not only remain within the neo-liberal policy paradigm characteristic of the region from the early 1990s, but that the crisis radicalised Baltic economies and particularly their fiscal stance. We show that there are a number of unique features in all three Baltic republics’ political economies that made such a radicalisation possible. However, these unique features make it almost impossible for the Baltic experience to be replicable anywhere else in Europe. 1. Introduction Europe, and the rest of the developed world along with it, seems to be mired in a debate over whether austerity brings growth or not. While there seem to be less and less candidates for actual European cases where fiscal retrenchment resulted in economic recovery and growth, the Baltic states persistently attempt to claim that austerity works. All three countries were painfully hit by the global financial crisis in 2008-2009 and topped the global charts in GDP contraction; all three responded to the crisis by adopting a series of austerity measures. In 2010, the Baltic states started to recover and recorded GDP growth between 5.5% and 7.6% in 2011. In the light of such temporal sequences of events, there has been a temptation in the policy circles both inside the Baltic states but also internationally to draw a causal conclusion and to claim that it was the austerity that led to growth.
    [Show full text]
  • Rainz 24.Qxd
    TECHNOLOGY GOVERNANCE Working Papers in Technology Governance and Economic Dynamics no. 24 the other canon foundation, Norway Tallinn University of Technology, Tallinn CONTACT: Rainer Kattel, [email protected]; Wolfgang Drechsler, [email protected]; Erik S. Reinert, [email protected] The Copying Paradox: Why Converging Policies but Diverging Capacities for Development in Eastern European Innovation Systems? 1 Erkki Karo and Rainer Kattel August 2009 1 Corresponding author, email: [email protected]. Research for this study was partially supported by the Estonian Ministry of Education and Research (targeted financing grant no SF0140094s08), Estonian Ministry of Economic Affairs and Communication (I-PUP grant) and the Estonian Science Foundation (grants no 7577, 6703 and 7441). Abstract This paper analyses the development of Eastern European innovation systems since the 1990s by looking together at the theoretical and empirical accounts of two discourses that have had a siginificant impact on the development of innovation systems: innova- tion policy and public administration and management. We propose a framework for analysing the development of innovation policies distinguishing between two concepts - policy and administrative capacity – that are necessary for innovation policy making and implementation. Using the framework we show how the Eastern European innova- tion systems have, because of past legacies and international policy transfer, developed a highly specific understanding of innovation policy based on the initial impact of the Washington Consensus policies and later the European Union. We argue that because of the interplay between the principles and policy reccomendations of the two interna- tional discourses we can see the emergence of a ‘copying paradox’ in Eastern European innovation systems: that is, despite the perception of policy convergence, we can wit- ness a divergence in the policy from the intended results, and as a result can talk about limited and de-contextualised policy-making capacities.
    [Show full text]
  • Assessing Divergent Development Trajectories: Schumpeterian Competition, Finance and Financial Governance* Leonardo Burlamaqui** Rainer Kattel***
    Assessing divergent development trajectories: Schumpeterian competition, finance and financial governance* Leonardo Burlamaqui** Rainer Kattel*** Recebido: 29/01/2015 Versão Revisada (entregue): 24/08/2015 Aprovado: 28/08/2015 ABSTRACT The paper offers four propositions for discussion. First, it argues that instead of the often- assumed convergence among nations, history shows us that divergence is a more appropriate way to conceptualize development trajectories; and that this is especially visible in the last century. Secondly, the paper suggests that “convergence” and “catch-up” are, from a Schumpeterian perspective, theoretically inadequate concepts as they frame development narratives similarly to the Rostovian idea of a linear path towards some sort of “development equilibrium”. Thirdly, we outline this schumpeterian framework, centered on the concept of leapfrogging through innovation and finance. The paper concludes by pointing out that macrofinancial coherence and “robust” economic governance (the role of the State playing a key role here) are essential dimensions – although scarcely researched of such alternative framework – for understanding development trajectories. KEYWORDS | Development; Finance; Competition; Leapfrogging; Schumpeter JEL-CODES: O1; O33; O38 * This is a substantial further development of our previous paper, Burlamaqui and Kattel (2014). The authors would like to thank Jan Kregel for comments to an earlier draft of the paper and to the two anonymous reviewers whose sharp questions and suggestions helped us to refine a number of points. The usual disclaimers apply. ** Universidade do Estado do Rio de Janeiro, Rio de Janeiro (RJ), Brasil. E-mail: [email protected] *** Tallinn University of Technology, Estonia. E-mail: [email protected] AT Rev. Bras. Inov., Campinas (SP), 15 (1), p.
    [Show full text]
  • Reinert Kattel 14.Qxd
    TECHNOLOGY GOVERNANCE Working Papers in Technology Governance and Economic Dynamics no. 14 the other canon foundation, Norway Tallinn University of Technology, Tallinn CONTACT: Rainer Kattel, [email protected]; Wolfgang Drechsler, [email protected]; Erik S. Reinert, [email protected] European Eastern Enlargement as Europe’s Attempted Economic Suicide?1 2 3 Erik S. Reinert and Rainer Kattel July 2007 1 This article is drawn from our earlier research (Reinert and Kattel 2004; and Reinert 2006). For a full exposition of the history of economic policy, see Reinert 2007. Research for this article has been partially funded by Estonian Science Foundation, Grant No.6703. 2 The Other Canon Foundation (Norway) and Tallinn University of Technology (Estonia). 3 Tallinn University of Technology, Estonia. Corresponding author email: [email protected]. Abstract We argue that the process of European economic integration has made a qualitative shift: from a Listian symmetrical economic integration to an integrative and asymmetrical integration. This shift started in the early 1990s with the integration of the former Soviet economies into the economies of Europe and the world as a whole, reached its climax with the Eastern enlargement of the Union in 2004, and now forms the foun- dation of the renewed Lisbon Strategy. This change is measurably threat- ening European welfare: the economic periphery in the first instance, and potentially the core countries as well. Two parallel processes aggravate this development: the timing of the enlargement at this particular phase of the evolving techno-economic paradigm; and the creation of the European Monetary Union along the so-called Maastricht route towards convergence and fiscal stability.
    [Show full text]
  • Deindustrialisation Reconsidered: Structural Shifts and Sectoral Heterogeneity
    Deindustrialisation reconsidered: Structural shifts and sectoral heterogeneity Fiona Tregenna South African Research Chair in Industrial Development University of Johannesburg Antonio Andreoni Associate Professor of Industrial Economics at University College London Head of Research at the UCL Institute for Innovation and Public Purpose UCL Institute for Innovation and WORKING PAPER Public Purpose WP 2020—06 About the Institute for Innovation and Public Purpose The UCL Institute for Innovation and Public Purpose (IIPP) aims to develop a new framework for creating, nurturing and evaluating public value in order to achieve economic growth that is more innovation-led, inclusive and sustainable. We intend this framework to inform the debate about the direction of economic growth and the use of mission-oriented policies to confront social and technological problems. Our work will feed into innovation and industrial policy, financial reform, institutional change, and sustainable development. A key pillar of IIPP's research is its understanding of markets as outcomes of the interactions between different actors. In this context, public policy should not be seen as simply fixing market failures but also as actively shaping and co-creating markets. Re-focusing and designing public organisations around mission-led, public purpose aims will help tackle the grand challenges facing the 21st century. IIPP is housed in The Bartlett, a leading global Faculty of the Built Environment at University College London (UCL), with its radical thinking about space, design and sustainability. This report can be referenced as follows: Tregenna, F. and Andreoni, A. (2020). Deindustrialisation reconsidered: Structural shifts and sectoral heterogeneity. UCL Institute for Innovation and Public Purpose, Working Paper Series (IIPP WP 2020-06).
    [Show full text]
  • Estonia's Digital Transformation: Mission Mystique and the Hiding Hand
    Institute for Innovation and Public Purpose Estonia’s digital transformation: Mission mystique and the hiding hand Rainer Kattel Professor of Innovation and Public Governance Deputy Director, UCL Institute for Innovation and Public Purpose Ines Mergel Professor of Public Administration, University of Konstanz, Department of Politics and Administration Working Paper IIPP WP 2018-09 September 2018 About the Institute for Innovation and Public Purpose The UCL Institute for Innovation and Public Purpose (IIPP) aims to develop a new framework for creating, nurturing and evaluating public value in order to achieve economic growth that is more innovation-led, inclusive and sustainable. We intend this framework to inform the debate about the direction of economic growth and the use of mission-oriented policies to confront social and technological problems. Our work will feed into innovation and industrial policy, financial reform, institutional change, and sustainable development. A key pillar of IIPP's research is its understanding of markets as outcomes of the interactions between different actors. In this context, public policy should not be seen as simply fixing market failures but also as actively shaping and co-creating markets. Re-focusing and designing public organisations around mission-led, public purpose aims will help tackle the grand challenges facing the 21st century. IIPP is housed in The Bartlett, a leading Global Faculty of the Built Environment at UCL, with its radical thinking about space, design and sustainability. Suggested citation Kattel, R. and Mergel, I. (2018). Estonia’s digital transformation: Mission mystique and the hiding hand. UCL Institute for Innovation and Public Purpose Working Paper Series (IIPP WP 2018-09).
    [Show full text]
  • Innovation and Innovation Policy in the Periphery: Latin America and Central and Eastern Europe Compared
    Paper presented in the VI Globelics Conference at Mexico City, September 22-24 2008 Globelics Innovation and Innovation Policy in the Periphery: Latin America and Central and Eastern Europe Compared Rainer Kattel,1 I Introduction There are two somewhat contrasting trends in today‟s world economy that have not been explained satisfactorily: First, despite growing exports and foreign direct investments (FDI; also in medium and high tech industries and services), many developing countries have grave difficulties in upgrading their economic structures and consequently experience stagnating real incomes and growing inequality. (See, e.g., World Bank 2005, Guiliani et al 2004, Palma 2005, Reinert and Kattel 2007, and Amsden 2007) Second, increasing trade in terms of imports from developing countries and outsourcing of jobs to poorer regions has had somewhat similar impact in some of the most developed countries: stagnating real wages and growing income inequality during the last decade; prime examples of such trends are the US and Germany. (See, most recently, Krugman 2008; further also Samuelson 2004) As to the first trend, Figures 1-42 give a snapshot view of macroeconomic developments in key developing countries during the last decades. What is remarkable in these figures is not the exhilarating raise in FDI and exports (Figures 1- 3), but the stunningly obvious divergence in real income growth between Asian economies, on the one hand, and Hungary and Mexico, both key countries for their respective regions as far as FDI and exports are concerned, on the other hand (Figure 4). While China and Korea have seen their GDP per capita multiplied at least 4 times since 1980, Hungary and Mexico have struggled throughout the last decades to stay above the 1980 level.
    [Show full text]
  • Leading Places on the Map:Opening up Leadership Practices in Two
    Administrative Culture Halduskultuur. Administrativna® kul Ýtu ra.Verwaltungskultur. Hallintokulttuuri vol. 19 no. 1 Ragnar Nurkse Department of Innovation and Governance Tallinn University of Technology 2018 Administrative Culture Established in 1999 EditOR-in-CHieF: Wolfgang Drechsler, Tallinn University of Technology EditOriaL BOard: Marleen Brans, Catholic University of Leuven Veiko Lember, Tallinn University of Technology Tiina Randma-Liiv, Tallinn University of Technology Eugenie Samier, University of Strathclyde MANAGING EDITOR: Shobhit Shakya, Tallinn University of Technology AdvisORY BOard: Pertti Ahonen, University of Helsinki; Jörg Bogumil, Ruhr-University Bochum; Geert Bouckaert, Catholic University of Leuven; Fenwick W. English, University of North Carolina at Chapel Hill; Agustin Ferraro, University of Salamanca; György Jenei, Corvinus University of Budapest; Christoph Knill, University of Munich; Vitalis Nakrošis, University of Vilnius; Edoardo Ongaro, The Open University, UK; Janine O'Flynn, University of Melbourne; B. Guy Peters, University of Pittsburgh; Martin Potu° ček, Charles University in Prague; Isabella Proeller, University of Potsdam; Harald Sætren, University of Bergen; Markku Temmes, University of Helsinki; Baldur Thorhallsson, University of Iceland; Frédéric Varone, University of Geneva; Mirko Vintar, University of Ljubljana COntact: Shobhit Shakya, Ragnar Nurkse Department of Innovation and Governance, Tallinn University of Technology, Akadeemia tee 3, 12618 Tallinn, Estonia, [email protected] ELECTRONIC ACCESS: www.halduskultuur.eu SubmissiOns: Submissions will be peer-reviewed anonymously. Manuscripts should be uploaded electroni- cally via http://halduskultuur.eu/submit.html The journal follows the Harvard Manual of Style. For sample notes, see www.halduskultuur.eu The journal is published twice per year. Full text available in EBSCO, Central and Eastern European Online Library and Google Books online databases.
    [Show full text]
  • Evolution of Technology in the Digital Arena: Theories, Firm-Level Strategies and State Policies
    CWS/WP/200/47 WORKING PAPER Evolution of Technology in the Digital Arena: Theories, Firm-level Strategies and State Policies SMITHA FRANCIS MARCH 2018 CENTRE FOR WTO STUDIES INDIAN INSTITUTE OF FOREIGN TRADE, NEW DELHI Evolution of Technology in the Digital Arena: Theories, Firm-level Strategies and State Policies Smitha Francis Abstract This paper analyses the evolution of technology, encompassing the characteristics and dynamics of innovation and technological change, as well as their interactions and interrelations across diverse technical areas that generate organisational changes and systemic socio-economic changes. It provides a brief overview of the various theoretical approaches that have examined technological evolution at different analytical levels, which is followed by a detailed discussion of Carlota Perez‟s techno-economic paradigm. We are currently witnessing the ultra-dynamic digital era within the information and communication technology (ICT) revolution, which has seen the emergence of the inter-related technological systems of Big Data, the Internet of Things, robotics, online platforms and artificial intelligence. The paper undertakes an analysis of the features and phases of the ICT revolution in detail, including the ongoing digital phase. It discusses the opportunities and challenges presented by each phase of the product/technological lifecycle at the firm level, to innovators, fast followers and incumbents. It also discusses different strategies used by the innovators and fast followers in the digital era for increasing their market share and erecting barriers to entry for new entrants. It is argued that to realise the full potential of the possibilities of digital technologies, policies have to take into account opportunities and challenges at three levels: (i) those in the digital space itself; (ii) those associated with the digital transformation of services; and (iii) those associated with digital transformations in the production space whether in the industrial or agricultural sector.
    [Show full text]