chris freeman - rationale and method. starting point: traditionally economists have failed to...
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Chris Freeman - Rationale and Method
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• Starting point:
• Traditionally economists have failed to properly examine how technical change comes about.
• But…
• New growth theory
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• New growth theory privileges education, research and experimental development as the basic factors underlying economic growth.
• Shift in focus driven by shift in employment patterns
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• Research and inventive activities account for only a small proportion of “info” employment
• But R&D is at the heart of the global economy - produces bulk of the new materials, products, processes and systems
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• Growth of a professionalized system of R&D is
– "perhaps the most important social and economic change in twentieth century industry".
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• 1870s first specialized R&D labs appear in industry.
• Previously advance of technology to due mainly to direct involvement in the production process
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• Adam Smith - "a great part of the machines made use of in those manufactures in which labour is most subdivided, were originally the inventions of common workmen.”
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• Modern R&D contrasts with this by dint of:
• its scale,
• scientific content and
• the extent of its professional specialisation
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• Professionalisation is associated with:
• the increasingly scientific character of technology
• the growing complexity of technology and the partial replacement or batch/custom production by flow/mass production lines
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• trend towards division of labour creates specialised R&D labs
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• Freeman, addresses the operation of R&D from traditional economic perspective - efficiency in the deployment of scarce resources.
• Thus he seeks to address the following questions:
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• 1. How can we improve the flow of new information, knowledge, inventions and innovations?
• 2. What kind of economies of scale are therein research or in development?
• 3. Can the gestation period for innovation be shortened?
• 4. What kind of firms are most likely to innovate and under what market conditions?
• 5. What types of incentives are most effective in generating invention and innovation?
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• Traditional reluctance to examine invention and research in this way creates:
• mythology around invention • a magic wand approach to science and
technology
• "What is not understood may often be feared or become the object of hostility."
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• R&D revolution of the 20th C. involves a fundamental change in the relationship between society and technology.
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• Consider the argument that science and technology and autonomous
• scientists concerned with discovery
• engineers concerned with practical application
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• Empirical evidence to suggests that science and communication with the scientific community is vital for contemporary technical innovation.
• Thus we have science-associated technologies
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• Thus the R&D system represents the point of entry for science into the industrial system.
• Advent of new science-based technologies has affected the way in which improvements and exchanges are made in production
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• Improvements and changes now involves some grasp of theoretical scientific principles.
• Creates substantial problems between specialist and non-specialist - alienation.
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