international technology transfer and development

8/9/2019 International Technology Transfer and Development

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1. Chapter one: Introduction (PAGE)

1.1. Purpose of the study ( page)1.1.1. Pakistan and china historical friendship and interrelation

1.1.1.1. Recent development of China and Pakistans look east policy

1.1.1.2. numerous bilateral agreements1.1.1.3. China is the biggest and growing source of technology

1.1.1.4. Pakistan remains backward

1.1.2. What can we learn from China and about China1.1.2.1. How can Pakistan achieve similar success

1.1.2.2. how can China help Pakistan achieve this success

1.1.3. Understanding technology transfer

1.1.3.1. Typical Vs modern (static Vs dynamic) understanding1.1.3.2. modeling technology generation and transfers on the global scale

1.1.3.3. modeling international Technology transfer between any two

nations

1.1.4. Policy Analysis1.1.4.1. Analysis of past and present policies and their results

1.1.4.2. proposing changes in policy and the policy making system1.2. Fundamental concepts

1.2.1. Development

1.2.1.1. what is economic development,

1.2.1.2. Development is concerned with knowledge1.2.1.3. technology is knowledge in action

1.2.2. Technology

1.2.2.1. Conceptual and definition problems1.2.2.2. Different perspectives of studying technology

1.2.2.2.1. Economic aspect

1.2.2.2.1.1. sectoral usage of technology1.2.2.2.1.2. knowledge intensity classification

1.2.2.2.2. Social aspect

1.2.2.2.3. Technical aspect1.2.2.3. Technology and knowledge, economic value of technology

1.2.2.3.1. Components of technology

1.2.2.3.1.1. Technoware, Inforware, Humanware and Orgaware

1.2.2.3.1.2. Core competency and dynamic capability1.2.2.4. The uncertainty factor

1.2.2.5. A functional definition and its terms and conditions

1.3. Designing of the study (1 page)1.3.1. same as the objectives detailed above.


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2. Chapter Two: Technology Transfer

( pages)

2.1. Definition

2.1.1. Definitions by different authors and different perspective

2.1.1.1. our working definition2.1.2. Forms of transfer (knowledge, artifacts, etc know how etc)

2.1.3. Means of transfer

2.1.3.1. active/regular/intended/planned means, licensing, IP, FDI, Trade,training and education, joint research, state and commercial, etc

2.1.3.2. passive/irregular/unintended/unplanned means imitation, reverse

engineering, spillover effect, copy right infringements

2.1.4. clarifying other related concepts2.1.4.1. Invention and Innovation

2.1.4.2. Learning

2.1.4.3. Diffusion (commercial and market/social)

2.1.4.4. Capability and Capacity2.1.4.5. Internal and international transfer (firm level a-national nature of

technology, policy level impact of diplomatic relations)2.1.5. intellectual property rights

2.1.6. Criteria for success

2.1.6.1. out of the door

2.1.6.2. installation2.1.6.3. commercialization

2.1.6.4. capability development

2.1.6.5. general increase in productivity and profitability2.1.7. sustainability

2.1.8. Problems of transfer (Risks and costs of learning Vs developing)

2.1.8.1. Technological capability2.1.8.1.1. lack or awareness

2.1.8.1.2. lack of information/communication

2.1.8.1.3. lack of ability to choose/select/vision/trust/2.1.8.1.4. high risk/fear of failure

2.1.8.1.5. path dependence

2.1.8.1.6. shortage of capital

2.1.8.2. Framework condition2.1.8.2.1. Nature of technology it self

2.1.8.2.2. industrial and state policies social norms

2.1.8.2.3. network effect2.1.8.2.4. infrastructural weakness

2.1.8.2.5. technical support

2.1.8.2.6. availability of raw materials/ complementary goods


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3. Chapter three: Historical overview of the technology transfer studies

(pages)

3.1. Historical progress

3.1.1. Ancient economy, Silk rout wars and trade

3.1.1.1. Ancient innovation and diffusion3.1.2. Industrial revolution and the spread of the printing press and other

technologies in European countries

3.1.2.1. Colonial era and spread of western technologies3.1.2.2. Japanese technological development

3.1.2.3. Technological development of the colonies and China

3.2. Modern history of technology transfer trends and research

3.2.1.1. Modern economic setting3.2.1.2. UN platform, its work

3.2.1.3. post ww-ii reconstruction and marshal plan,

3.2.1.3.1. early economic approach, internal capability plus foreign

support3.2.1.4. sixties and seventies the developing countries concern for

technological development,3.2.1.4.1. import substitution

3.2.1.4.2. nationalization

3.2.1.4.3. planned economy

3.2.1.4.4. oil shocks3.2.1.4.5. appropriate technology concept

3.2.2. eighties and nineties the rise of the subject

3.2.2.1. famous authors and their work3.2.2.1.1. transaction cost theory

3.2.2.1.2. technology life cycle model

3.2.2.1.3. technology gap theory3.2.2.1.4. the eclectic model of technology transfer

3.2.2.1.5. others

3.2.3. late nineties and the new millennium3.2.3.1. the arrival of innovation studies and decline of international

technology transfer research

3.2.3.2. fundamental changes in development patterns

3.2.3.2.1. the rise of IT3.2.3.2.2. Modular production

3.2.3.2.3. off shoring and trade blocks

3.2.3.2.4. end of cold war3.2.3.2.5. western scholars turn to internal technology transfer

3.2.3.2.6. mega corporations

3.2.3.2.7. hopelessness of developing countries shift to inward focus3.2.3.2.8. loss of interest in developing world: most aspects already

understood, lack of generalization in the rest, high complexity

recognized, small number of authors, globalization, understanding

of the misconceptions


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3.2.3.3. problems with the typical approach: based on traditional economic

concepts thus inherent faults, misconception about neutrality of

knowledge, misconception about the difference between innovation andtechnology transfer or technological change, shortened technology life

cycles


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3.2.4. Part two: Global Technology generation, transfer and learning system

Objectives:Build the theoretical background for a systems model of international technology

transfer

Review the indicators of development, trade, investment, knowledge generationand technology transfer, elaborate status and evolutionary changes

Build a model of global technology creation, transfer and learning systems.A conceptual model to plot the structural, industrial, technological,

institutional, and other changes that occur with technology generation,

transfer and learning in the global scenario

A generic model to plot a nations position and suitable trajectory ofdevelopment

Establish the usefulness and limits of the conceptual model

4. Chapter four: the modern approaches(pages)

4.1. the systems concept

4.1.1. brief introduction

4.2. systems view in economics, the evolutionary economics and the institutional

economics4.2.1. failures of the traditional economics

4.2.1.1. limitations of the subject, assumptions and reductionism

4.2.2. Economic prosperity depends on technological utilization4.2.2.1. technology related failures

4.2.2.1.1. exogenous factor

4.2.2.1.2. Linear approach4.2.3. the rise of the systems

4.2.3.1. Schumpeterian approach and other contributions

4.2.3.2. works by Lundvil and Friedman, focusing attention to innovationthats very much a technology transfer issue

4.2.3.3. the national system of innovation,

4.2.3.4. the technological systems

4.2.3.5. the national learning systems4.2.4. technology as a systematic concept

4.2.4.1. technology evolves inside other systems namely economic and

social4.2.4.2. technology inside a firm

4.2.4.3. the meso level

4.2.4.4. the macro level4.2.4.5. components, interrelatedness, systematic synergies, emergence and

dynamic balance and evolution

4.2.4.6. technology transfer and development are systematic

4.2.5. technology transfer in a system perspective


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5. Chapter five: The global technology generation and transfer system5.1. the uneven distribution of knowledge and wealth

5.1.1. the three distinct states of knowledge creation transfer and utilization

5.1.1.1. defining the system, components, interactions boundaries andenvironment

5.1.1.2. the innovative and learning core of the system

5.1.1.2.1. organizations, institutions and the state5.1.1.3. the integrated socio economic system drivers and barriers of

innovation and technology development

5.1.1.4. the power of the corporations

5.1.1.5. interdependence and co-evolution of the knowledge technologyand economic systems

5.1.2. the knowledge creation systems of the advanced nations, cases of the

developed world

5.1.2.1. the steady state and continuous progress5.1.2.2. the virtuous cycle of knowledge and technologies

5.1.3. the lagging slow learning systems of underdeveloped economies, leastdeveloped countries and lower income developing countries

5.1.3.1. the steady state of the system, and poverty trap

5.1.3.2. the vicious cycle of low knowledge and technology

5.1.3.3. drivers and barriers of innovation and technology development5.1.4. the interaction between the advanced and the lagging systems

5.1.4.1. classified analysis of interactions and its effects on reducing the

development and technology gap5.1.4.2. trade in high value added products vs basic commodities

5.1.4.3. foreign direct investment and development aid

5.1.4.4. licensing of technological knowledge5.1.4.5. arrival of students and immigration, brain drain

5.1.4.6. the widening gap

5.1.5. the nations in transition, active learning systems, cases of Japan, Korea,5.1.5.1. initial preconditions for change

5.1.5.2. the emergence of a learning system at the core

5.1.5.3. initial state of the socio economic systems

5.1.5.4. significance of the role of the state and market5.1.5.5. integrated transformation of the core and the periphery

5.1.5.6. transition from a learning to an innovating system

5.1.6. active learning systems interactions with the advanced systems and thelagging systems (south-south)

5.1.6.1. The market driven interactions: appropriability effects of

technology transfer from the active learning system to lagging system,proximity, price, expertise, investment, need, competition, etc.

5.1.6.2. the role of state in intera and inter national development,

significant of the advanced south for developing south

5.1.6.3. designing the China- Pakistan specific model for study


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6. Chapter Six: indicators of the global systems and interpretations

6.1.1. explaining indicators and their role in understanding the extent of reality

6.1.1.1. Growth indicators are simple, development indicators arenumerous and interconnected

6.1.2. list of indicators: break down on technology system basis

6.1.2.1. overall economic development indicators GDP, etc6.1.2.2. level of technological development

6.1.2.3. S&T and knowledge and brain drain

6.1.2.4. living standards, Human Development Index6.1.2.5. investment FDI, financial and technology

6.1.2.6. trade, segmented as high, medium and low tech

6.1.2.7. economic structural change, employment, sectoral GDP, exports

6.1.2.8. savings and domestic investment6.1.2.9. governance and quality of public service

6.1.2.10. development aid

6.1.2.11. environment and sustainable use of resources

6.1.2.12. intellectual property rights6.1.3. interpretations

6.1.3.1. state, magnitude, trends and changes,6.1.3.2. regional factors

6.1.3.3. grouping of indicators

6.1.3.4. classification of the economies on knowledge basis

6.1.3.5. empirical evidence for the existence of global technology creation,transfer, learning and development


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Part three: Technology Transfer from China to Pakistan the state of affairs and prospects

(4)

Objectives:Prepare the background for understanding the economic, political and

strategic histories of the two nations

Investigate the path of technological learning and developmenttaken by the two nations

Explain their mutual interactions and evaluate the status, evolution and

impact of technological cooperation policies.Current status and its possible outcomes, (economic marginalization,

diplomatic slavery)

Propose the systematic and policy considerations for a long term plan of

technological learning and development

7. Chapter Seven: China and Pakistan, histories of the economic and technologicaldevelopments andmutual cooperation

7.1. political history7.2. economic history

7.3. development of the learning and innovation systems7.4. diplomatic and strategic partnership


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8. Chapter Eight: : Technology creation, transfer and learning China and

Pakistan

8.1. history of interregional technology transfer

8.1.1.1. The silk rout8.1.1.2. Arrival of Buddhism from the Gandhara civilization

8.1.1.3. Arrival of Islam to India and China

8.1.1.4. The Mughal emperors of India and the dynasties of China8.2. Modern era

8.2.1. cooperation in defense and construction

8.2.1.1.1. defense technologies, Heavy industrial complex Taxila, Kamra

F6 fighter jet rebuild factory, JF Thunder Fighter jet, AlkhalidTank, light arms and weapon systems, Pakistans defense exports

8.2.1.1.2. Allegations of Nuclear and missile proliferation

8.2.2. bilateral agreements

8.2.2.1.1. FTA8.2.2.1.2. Pak China investment treaty

8.2.2.1.3. Pak China Center8.2.2.1.4. Pak China University

8.2.2.1.5. State sponsorship of technology transfer projects

8.2.2.1.6. analysis of the interdependence in economic and technological

cooperation8.2.3. main areas of technological cooperation: structured interviews of selected

stakeholders, managers, officers, customers and its analysis

8.2.3.1. selected state sponsored projects8.2.3.1.1. infrastructure construction projects

8.2.3.1.1.1. Karakorum Highway

8.2.3.1.1.2. Gawadar deep sea port8.2.3.1.1.3. Nuclear power projects

8.2.3.1.1.4. Hydro Electric dams and irrigation projects

8.2.3.1.1.5. earthquake reconstruction8.2.3.1.1.6. other projects

8.2.3.1.2. agriculture sector

8.2.3.1.2.1. inter state agriculture research cooperation

8.2.3.1.2.2. agriculture machinery exports8.2.3.1.2.3. imports of agriculture products to China

8.2.3.1.2.4. Pak China fertilizer industry

8.2.3.1.3. minerals and energy sector8.2.3.1.3.1. Saindak Project

8.2.3.1.3.2. Electric power stations and sustainable energy

cooperation8.2.3.1.3.3. Chromium and titanium oxides

8.2.3.2. market driven technology transfers

8.2.3.2.1. machinery, tools and component imports

8.2.3.2.2. Direct investments and joint ventures


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8.2.3.2.2.1. Haier

8.2.3.2.2.2. ZTE

8.2.3.2.2.3. Sind Dongfeng buses8.2.3.2.2.4. SMEs motorcycle industry

8.2.3.2.3. supply of high tech consumer and business products

8.2.3.2.4. other significant channels of technological learning fromChina,

8.2.3.2.4.1. Pakistani students in China, graduate, postgraduate

and doctoral, visiting scholars etc.8.2.3.2.5. R&D collaborations

8.2.3.2.6. Education and training of Govt and Military officers

8.3. Analysis of the current status8.3.1. Main drivers and Barriers

8.3.2. the geographical and cultural advantages, disadvantages

8.4. evaluating the effectiveness of Technology transfer from China to Pakistan

8.4.1. benchmarking and comparative approach8.4.2. comparison of national policies effectiveness

8.4.3. sectoral differences in effectiveness8.4.4. Communication and awareness

8.4.5. mutually reinforcing and isolated channels

8.4.6. Barriers specific to Pakistan

8.4.7. Barriers specific to China8.5. general and specific considerations in over all technology transfer from China to

Pakistan

8.5.1.1. What China gains from the relationship8.5.1.2. opening the isolated west of China and North of Pakistan

8.5.1.3. the energy corridor and energy security

8.5.1.4. linguistic differences and learning


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9. Chapter Nine: the proposed plan

9.1. Estimation of the learning potential

9.1.1. general levels of technological capability and technology gap9.1.2. Setting the goal

9.1.2.1. inevitability theorem

9.1.2.2. unrecognized areas of cooperation9.1.2.3. unnecessary barriers

9.1.2.4. the latent drivers

9.1.3. the Chinese technological trajectory9.1.4. the Pakistani technological trajectory

9.1.5. ultimate extending and merging the two learning and innovation systems

9.1.6. who should do what

9.1.6.1. Pakistan specific recommendations9.1.6.2. China specific recommendations

9.1.6.3. broadening the bilateral channels

9.1.6.4. sector specific technological learning potential

9.1.6.5. learning system specific cooperation9.1.6.6. learning environment enhancement

9.1.7. estimating the mutual benefits9.1.8. reality check

10. Chapter Ten: General Conclusion

10.1. technology transfer and the systems view10.2. global system of technology generation and learning

10.3. Technology creation transfer and learning China and Pakistan


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11. Loose endsThe Washington Consensus, (China India didnt follow the free marketpath of WCons) trickle down effect and the capability argument

INTERNATIONAL VARIATION IN TECHNOLOGY APPLICATIONS

ANDIMPLEMENTATION............................................................................................. 39Regional Variation of Technology Application andImplementation........................... 39Drivers and Barriers to Implementing TechnologyApplications................................. 41Cost andFinancing................................................................................................... 42Laws and

Policies.....................................................................................................43Social Values, Public Opinion, andPolitics............................................................. 44Infrastructure ............................................................................................................ 45PrivacyConcerns...................................................................................................... 46Resource Use and EnvironmentalHealth................................................................. 47

R&DInvestment....................................................................................................... 48Education andLiteracy............................................................................................. 49Population andDemographics.................................................................................. 51Governance andStability ......................................................................................... 52Problems and Issues and Relevant TechnologyApplications ...................................... 54

Country Capacity to Acquire Technologies and Drivers, and Barriers toImplementingTechnologyApplications .............................................................................................. 62Selecting Countries forAnalysis.............................................................................. 64


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Determining Country Capacity to Acquire Technology Applications andTheirDrivers andBarriers.............................................................................................. 65Determining Country Capacity to Implement Technology Applications

Relevant toProblems andIssues......................................................................................................94Promote Rural EconomicDevelopment................................................................... 99Promote Economic Growth and InternationalCommerce ..................................... 103Improve PublicHealth............................................................................................ 107Improve Individual

Health ..................................................................................... 111Reduce Resource Use and Improve EnvironmentalHealth ................................... 115Strengthen the Military and Warfighters of theFuture .......................................... 119Strengthen Homeland Security and Improve PublicSafety................................... 123Influence Governance and SocialStructure ........................................................... 127Summary of Country Capacities for TechnologyImplementation............................. 131

11.1.1.

11.1.2. prominent features of the first world, status and evolution11.1.2.1. science and technology

11.1.2.2. economic structure (structural break up)

11.1.2.3. the power of corporations11.1.2.4. Mutual technology transfer (cooperation, why?)

11.1.2.5. technology exports, what and why

11.1.2.6. the virtuous cycle

11.1.3. cases of early technological developments UK, Western Europe, USA andJapan

11.2. the active learning economies11.2.1. catching up phenomena

11.2.1.1. initial conditions (similarity and differences)

11.2.1.2. transition state (structural change)

11.2.1.2.1. shifting focus from and to11.2.1.3. prerequisites

11.2.1.3.1. demographic (labor force and quality)

11.2.1.3.2. infrastructure


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11.2.1.3.3. economic policy and openness

11.2.1.3.4. level of industrialization

11.2.1.3.5. political system and institutions11.2.1.3.6. regional phenomenon

11.2.1.3.7. governance (stability, policy learning)

11.2.1.3.8. savings and investment11.2.2. the trigger for change11.2.2.1. innovation asymmetries

11.2.3. opportunity vs appropriate action11.2.4. breaking through the vicious cycle and the path ahead

11.2.5. the cases of Korea, Taiwan, China, East Asian economies and India

11.2.6. the failed takeoffs, USSR and eastern Europe, China (early attempts) and

Pakistan (development is a result of a conscious effort)11.3. slow learning economies

11.3.1. non inventive innovation

11.3.2. creative repairs11.3.3. technology and poverty reduction

11.3.4.

11.3.5. the vicious cycle11.3.5.1. historical background (path dependence and lock in)

11.3.5.2. level of knowledge, science and technology

11.3.5.3. economic infrastructure11.3.5.4. demographic reasons

11.3.5.5. resource scarcity

11.3.5.6. poverty

11.3.5.7. corruption11.3.6. the development trap and failed take offs

11.3.7. framework conditions

11.3.7.1. political stability11.3.7.2. economic openness

11.3.7.3. geographical location

11.3.7.4. socio cultural aspect11.3.7.5. policy making and implementation

11.3.7.6. systemic underdevelopment

escaping the trap internal and external conditions


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Potential versus actualHowever, closer analysis of the year-to-year changes which have occurred in theLDCs shows that historically many LDCs have experienced short periods of rapidgrowth, but these have been followed by economic crises in which there are often

quite severe output losses and economic recoveries of varying strengths andcompleteness

Developing productive capacityDeveloping productive capacities is the key to achieving sustained economic growthin the LDCs. It is through developing their productive capacities that the LDCs will beable to rely increasingly on domestic resource mobilization to finance their economicgrowth, to reduce aid dependence and to attract private capital inflows of a type thatcan support their development process. It is also through developing their productivecapacities that the LDCs will be able to compete in international markets in goodsand services which go beyond primary commodities and which are not dependent onspecial market access preferences. to secure the fiscal basis for good governanceand to ensure effective sovereignty or face recurrent, complex humanitarianemergencies

Benefiting from recent technological advances requires advancing towards andcrossing various thresholds in human capital, R&D and management practice, thesecapacities will not emerge automatically from the workings of market forces alone,but from the interplay of entrepreneurship, public policy and international actionProductive capacities are defined in this Report as the productive resources,entrepreneurial capabilities and production linkages which together determine thecapacity of a country to produce goods and services and enable it to grow anddevelop through three closely interrelated processes: capital accumulation,technological progress and structural changeCapital accumulation is the process of maintaining and increasing stocks of natural,human and physical capital through investment.Achieving technological progress is the process of introducing new goods andservices, new or improved methods, equipment or skills to produce goods and

services, and new and improved forms of organizing production through innovation.Structural change is the change in the inter- and intra sectoral composition ofproduction, the pattern of inter- and intra sectoral linkages and the pattern oflinkages amongst enterprises. The share of agriculture in GDP, industrial and serviceactivities are expanding, increase in industrial value-addedSuch change often occurs through investment and innovation, and the emergingproduction structure in turn influences the potential for further investment andinnovation.

Policy Orientationa production- and employment-oriented approach to poverty reduction which wouldencompass, rather than be narrowly focused on, increasing social sector spendingand achieving human development targets. It would also entail a development-driven

approach to trade rather than a trade-driven approach to development. An approachto developing productive capacities which is simply trade-centric will not be sufficientfor sustained and inclusive growthMacroeconomic policies oriented to promoting growth, investment and employment; A multi-level approach which not only seeks to set the framework institutions andmacroeconomic environment, but also includes policies to change meso-levelproduction structures and institutions, as well as micro-level capabilities andincentives; An active approach to promoting entrepreneurship;


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A strategic approach to global integration in which the speed and degree ofliberalization in different economic spheres take account of the goal of developingproductive capacities. the relaxing of key constraints on capital accumulation,technological progress and structural change

There is surplus labour, latent entrepreneurship, untapped traditional knowledge, avent-for-surplus through exporting and unsurveyed natural resources. Policy thus

needs to be geared to mobilizing these underutilized potentialsWithin the LDCs, increasing productivity and employment for long-run sustainablegrowth requires a twin strategyof investing in dynamically growing sectors while at the same time building capacityin sectors where the majority of labour is employedA strategy of investing only in dynamic sectors in attempts to leapfrog may not beenough to reduce poverty, mainly because the fastest-growing sectors may often notbe where the majority of the poor are employed and may require skills and trainingthat the poor do not possess.

The most effective approach would support and stimulate simultaneous investmentsin agriculture, industry and services, along the value chain of the promising sectors,as well as promotion of exports including, in particular, upgrading and increased localvalue-added of abundant natural resources. The focus should be on triggering growththrough investment and production linkages and seeking to sustain an interactiveeconomic growth process through the dynamic interrelationship between theprimary, secondary and tertiary sectors. Agricultural growth linkages, in which thereis a virtuous circle in which demand stimulus from agricultural growth generatesinvestment, entrepreneurship and employment in non-agricultural activities,particularly non-tradablesPoverty reduction can occur rapidly if policy catalyses and sustains a virtuous circlein which the development of productive capacities and the growth of demandmutually reinforce each other, and there is a transformation of productive structurestowards more skilled and technology-intensive production systems consistent withhigher valueadded activities and strong productivity growth. This will require thebuilding of a virtuous circle of increased savings, investment and exports through acombination of market forces and public action. This implies mobilizing,strengthening and transforming the enterprise sector from SMEs to larger globallycompetitive enterprises, diversification of their export structures and establishing adense network of linkages across firms and farms, in and between both the rural andnon-rural sectors. Much of the effort will be focused on strengthening the role ofdomestic enterprises.

The process requires a better balance between domestic and international sources ofgrowth. Increased exports and export diversification are an absolutely essential partof the strategy. However, an exclusive emphasis on exports rather than domesticdemand, or vice versa, or on developing productive capacities in tradables ratherthan nontradables, or vice versa, is likely to be counterproductive. Both matter forgrowth and poverty reduction. Increased domestic demand also results fromincreasing incomes and poverty reduction, and this builds a further feedbackmechanism supporting the momentum of growth as productive employmentopportunities expand.

An economic transformation process can take place only if an enabling policyframework is put in place that would bring about the process of capital accumulation,structural change and technological progress. This will require not only a re-evaluation of the current national and international policies, but also the building upof the necessary institutions, particularly the private enterprise sector (firms), andfinancial and knowledge systems. In addition to the need for investment andimprovement of the physical infrastructure, economic agents themselves (firms)need to be created or strengthened, entrepreneurship needs to be mobilized,


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underutilized traditional knowledge revived and productive employment created forunderutilized labour.Internationally it is important that the composition of aid shifts back towards thedevelopment of productive capacities.Increased aid for physical infrastructure transport, telecommunications and energy is certainly part of this. But it is also necessary to go beyond this, and in particular,

to strengthen production sectors and linkages, and also to support enterprisedevelopment and the improvement of domestic financial and knowledge systems.New international support measures which can promote the development ofproductive capacities in the LDCs need to be developed.Capital accumulationPhysical domestic private investment, external capital inflows and Human capitalaccumulation average number of years of schooling of the adult population minus

The brain drainEstimates of genuine savings, which take account of capital depreciation and naturalresourceDepletiongovernment final consumption expenditure in the LDCs was equivalent to $26 percapita compared with $186 per capita in other developing countriesStructural changeLabour productivityit required 5 workers in the LDCs to produce what one worker produces in otherdeveloping countriesthe production structure of the LDCs is strongly oriented to exploiting naturalresources, so their export structure is also strongly oriented in that wayPrimary Commoditiesmanufactured exportsmanufactured exports constituted only 13 per cent of total merchandise exportsupgrading within primary commodity exports

The overall lack of structural change, the very slow rate of productivity growth andthe limited range of goods in which LDCs are internationally competitive are allsymptomatic of a lack of technological learning and innovation within LDCsLand reform and Property rightsLack of Critical mass in Pakistan, joining China may resolve that.. how?


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The Global Technology creation, transfer and learning model

The model proposes three distinct economic and technological development System

stages experienced by the nations of the world.

The advanced or innovative stateThe learning/transformation or transition state

The slow learning state or the lagging state

The three states have a dynamic equilibrium

The first and the third state are steadier while the middle state is more dynamic

Every system has its distinct features that are all mutually interrelated and

interdependent. For simplicitys sake we start with the innovation (technology) core

of the system. As is mentioned in detail the first state has an advanced innovation

system (including innovation relevant parts of industry, university, State,

institutions and markets) where the invention and development of technologies is atthe state of the art, this state is steady and has its own dynamic relationships with

the surrounding environment or other systems. Namely Infrastructure, education,

legal, demographic, sociocultural, political, financial, and governance etc.

The interaction and interdependence of these elements is very strong and when seen

from the perspectives of growth and development, the main focus shifts from

internal dynamics of the innovation core, to the surrounding milieu.

All the three states exhibit this interaction among the systems that may act as either

barriers or drivers depending on their status.

In the advanced state the strong core is surrounded by efficient environmental

features, creating a systemic synergy, or virtuous cycle, where technologies are

created, transferred, adopted, defused and utilized, creating welfare and financial

strengths along with the most important aspect knowledge, that feeds back into the

creation of technologies and a continuity of the system is achieved.

The third or lagging state is almost the exact opposite to the first one, where the

central core is weak, incomplete, inefficient but not nonexistent. This core is

composed of the same main elements as the advanced innovation system does but

some elements are either irrelevant or too underdeveloped to be observable. Yet a

genetic code or blue print does exist, that matures through the stages of evolution of

the systems giving birth to newer aspects. For example an underdeveloped

innovation system doesnt posses a complex knowledge creation system similar to

that of the advanced state, lack of this system results in lack of or incompleteness of

an intellectual property rights or patenting system. In contrast to the advanced

system, the lagging system is surrounded by weak systems in its environment, that

act not as drivers but as barriers to creation, transfers, absorption and utilization of

knowledge and resulting change and progress. This weak system also exhibits a

steady state, where weak education, lack of governance, missing infrastructure,

financial weakness and political instability simply keeps weighing down the progress

and development.


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What is important to notice here is that the advanced and the lagging systems are in

continuous interaction and with the rise of globalization their interaction is getting

more and stronger. International trade in good sand services, unrestricted flow of

finances, rise of communication technologies and migration of people are a few

aspects that not only impact the elements of systems environment but also carry the

technologies and knowledge among the systems. These interactions have dual effectson the systems, positive and negative. Trade of high value added products or

technologies from the advanced side to the lagging side, provides a vital source of

technological advancement of the lagging system through learning the embedded

and embodied knowledge in the products from the advanced systems. But the

lagging systems exports of commodities and low value added products fetched much

less a price in comparison to the high tech imports, this deprives the lagging system

from financial freedom to develop and grow. Although investment and aid could

offset this effect to a certain degree the advantage of setting the rules of the game,

posses by the advanced system compounded by serious absorption capacity

limitations of the lagging system results in a over all weakening of the lagging

system and widening of the technology and development gap. The term vicious cyclebest describes the status of the lagging economies, and its not just their internal

systemic weakness but its also the effect of their interactions with the advanced state

nations. There are numerous interactions and complex effects but in almost all cases

the advanced and the lagging systems exhibit a steady state of increasing prosperity

and worsening poverty at the two extremes.

However there exists an intermediate state the catching

up/learning/modernizing/fast developing state. A few nations from the lagging state

group have been able to break out of the technological and economic backwardness

trap and embarked on a course of fast development and catching up. This state is

very dynamic, marked by high growth rates, structural change, infrastructure

construction, establishment of institutions as well as their creative destruction. The

central innovation core of the system exhibits emergence of a learning system,

composed of the elements of absorption and diffusion end of the innovation process.

This system is usually not stable without the rise of an innovative part, and as the

system matures the innovation or knowledge creation components start emerging

and strengthening. Ultimately completing the innovation core and development of

the environmental factors to a state similar to that of the advanced level. The

environment elements as mentioned above are very tightly connected with the core,

and thus exhibit a similar pattern of change and development.

Internal change

Interaction with the advanced.

Interaction with the lagging,

The opportunity for the lagging from the transforming//

international technology transfer and development

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