By H. Romijn
An authoritative exam of ways small enterprises in constructing international locations collect technological potential - the information and talents required to function expertise successfully and to conform it to neighborhood stipulations. It fills a niche within the verified literature on technological strength, which has missed the small-scale quarter despite the real function it performs in employment iteration. the writer develops a strategy for a quantitative evaluation of the educational method, utilizing case fabric from the small-scale capital items area in Pakistan's Punjab Province.
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TCls were calculated in this way for the 145 most commonly produced capital goods, ranging from simple metal drums to commercial aeroplanes. Next, an overall technological complexity index (OTCI) for each developing country was calculated by adding the TCIs of all capital goods that were actually being produced domestically. 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.
Data problems also limit the applicability of this method to developing countries. An attempt at measuring national capability in a large number of developed and developing countries more directly and comprehensively was made recently by UNIDO (UNIDO, 1989 and 1990), using a method based on the assumption that the technological capability of a country is manifest in the range and complexity of its engineering products. Capital goods were used because their manufacture requires metal~working skills and knowledge that are essential for industrialization.
1995; Wignaraja and Ikiara, forthcoming). Both of these focus on Africa. Aside from them, we have only the Jamaican case-study of a welding electrodes 34 Technological Capability in Small Firms manufacturer (Girvan and Marcelle, 1990), one of 12 machine-tool manufacturers in Hong Kong (Fransman, 1982) and another of technology transfer to a handful of small-scale industries in Tanzania (Alange, 1987) which arguably is not part of the mainstream capability literature because it was aimed specifically at assessing the impact of Swedish 'senior sister companies'.
Acquisition of Technological Capability in Small Firms in Developing Countries by H. Romijn