By Rajah Rasiah
This ebook employs novel thoughts to match technological features and fiscal functionality in seven international locations at various phases of commercial improvement: Brazil, Costa Rica, Indonesia, Kenya, Malaysia, South Africa and Uganda. the writer makes use of a strategy drawn from the expertise power framework, yet generally adapts and simplifies it to extract universal cross-industry parameters for statistical research. He employs the framework to check the technological, neighborhood sourcing and function dynamics of international and native organizations in various industries. the implications provide a typical synthesis and clean rules at the significance of overseas corporations in technological power development and financial functionality in constructing international locations. They exhibit that even if overseas companies are inclined to get pleasure from better human source and strategy expertise functions within the so much underdeveloped economies, within the extra complicated international locations this comparative virtue is considerably eroded. the writer indicates how the institutional and systemic power of a rustic may also help to provide an explanation for the extent of participation of international agencies in R&D actions. He additionally identifies household and neighborhood markets, infrastructure, incentives, traditional assets and human capital as very important elements in stimulating major R&D funding via international organisations.
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Extra info for Foreign Firms, Technological Capabilities And Economic Performance: Evidence From Africa, Asia and Latin America
Example text
The firms were asked if it was their policy to encourage team-working, small group activities to improve company performance, multi-skilling, interaction with marketing, customer service and R&D department, lifelong learning and upward mobility. HR was divided by three, which is the number of proxies used. 2) where Xi, Xmin and Xmax refer to the ith, minimum and maximum values respectively of the proxy X.
While beginners only learn and absorb, firms typically hire R&D personnel to learn and develop new products as they get closer to the technology frontier (Pavitt, 1984; Dosi, 1982). With the exception of funding of public labs and universities, firms seldom participate in basic research. Hence, firm-level R&D is largely focused on process technology and product development – especially diversification of use and proliferation. Given Kenya’s underdeveloped institutional and systemic facilities and the preponderance of labour-intensive assembly and processing operations, R&D is unlikely to produce statistically meaningful results involving export intensity.
The focus on only one firm and its suppliers in Costa Rica enabled a more detailed examination of technological capability building involving foreign firms. 5 SUMMARY This book examines exports, productivity and technological capabilities by comparing foreign and local firms. Since inflows of foreign investment directed at technology development are essentially born out of national economic development policy frameworks, efforts to evaluate the role of foreign firms in technology development cannot overlook economic policies.