The Dynamics of LocalizedTechnological Change

Lecture 6

Course: Innovation and Technology Transfer MSc Engineering Policy and Management of Technology

By: Miguel Palmeirinha & Nelson Marques

2001

Antonelli, C and Calderini, M (1999)

Introduction:Skill-intensive Industries in EE

Productivity growth Intense and rapid Tech. Change Learning-by-doing Implicit knowledge

Understand the

Dynamics of Innovation

European Industry “Traditional Sectors”

Introduction:Skill-intensive Industries in EE

Internal Organization Wage Structure Decision Process Timely adoption of inputs Parallel changes in the org. Interaction in design changes of

processes / products

Technological and

Organizational Change /

Innovation

Major Roles as a Source of Tech. Knowledge

Dynamics of Localized Knowledge

Duplications of research efforts Delays in diffusion Obstacles to the recombination of

knowledge

Technological Information

should be considered a public good

Losses

Localized Tech. Knowledge is firm-specificTransfer or adaptation from one firm to another can cost the same as new tech.

Dynamics of Localized Knowledge

Generic (codified) Tacit (implicit)

Localized Technological

Change

2 Forms of Knowledge

Internal External

Generation Process of the 2 forms of Tech. Knowledge.

Dynamics of Localized Knowledge

Dynamics of the four

Dimensions of Technological

Knowledge

TacitTacit CodifiedCodified

InternalInternal

ExternalExternal

Learning R&D

Socialization Recombination

Role of the Demand-Pull Forces

Increase/decrease of demand

Changes in factor Cost

Competition

Basic Hypotheses

Accommodate their size to the new levels of their demand

Increase the levels of Input or the efficiency of production technology

Empirical Analysis

Mechanical Engineering Industry Discrete-parts manufacturing industry

136 firms; Six years (1988-1994) Technological Change:

Learning processes Recombination of existing knowledge R&D activities

“Integration Age” Computer Integrated Manufacturing (CIM)

Empirical Evidence

Relationship between Demand shocks Localized technological change

Correlation between Trend in demand Trend in efficiency

Empirical Evidence

“Demand shocks should have an effect on efficiency trends within two years since the

time of the shock itself.”

2

2

t

tt

FATT

FATTFATTx

2

2

t

tt

Conclusions

Localized knowledge is a mix between Generic knowledge (top-down) Tacit knowledge (bottom-up)

Industrial Technological Centers Sustain localized processes Socialize technological know-how

Centimfe

Centimfe - Technological Center for the Mould, Special Tooling and Plastics Industries Created in January 15th 1991 Marinha Grande industrial complex. Association of 40% Public and 60% Private 170 associated companies; 90% industrial type

Centimfe - Specific Goals

To provide technical and technological support to companies;

To promote and carry on research and development activities, applied to mouldmaking, special tooling and plastics industries, which contributes to the solution of industry problems;

To promote quality increasement, acting over conditioning factors;

Support and promote technical and technological specialized training of companies' human resources.

Centimfe - Action Areas

Technical assistance in technological areas; Specific training to companies' technicians and

young-graduated people; Spreading of technical and technological

information; Consultancy, namely in investment projects

development and quality systems implementation, regarding company certification.

Centimfe - Services

Manufacturing Technologies Product Design and Development Quality Systems Information Technologies Calibration Laboratory Dimensional Control Laboratory Material Laboratory Training

Centimfe - Projects

ROUND THE CLOCK - 24 Hours Collaborative Product Development Work Project

ENGENHARIA DE POLÍMEROS - Master Degree and Specialisation - 1999/2000

CLUB RP - Rapid Prototyping Users and Suppliers European Network

PME2000 - SME Technological Innovation Support Project

TECNOEVOLUTION - Adaptation of Human Resources to Technological Evolution