Benefit of Technology Transfer to Developing Countries

Benefit of Technology Transfer to Developing Countries WHY IS THE TECHNOLOGY CONTRIBUTION OF MULTINATIONALS POTENTIALLY SO IMPORTANT FOR DEVELOPING COUNTRIES? WHAT FACTORS WILL DETERMINE WHETHER OR NOT THE TRANSFERED TECHNOLOGY ACTUALLY PROVIDES NET BENEFITS FOR THE HOST DEVELOPING COUNTRY? Todays world is divided no longer by ideology but by technology 15% of the earths population, provides nearly all of the worlds technology innovationshalf of the worlds population, is able to adopt these technologies in production and consumption. The remaining part, covering around a third of the worlds population, is technologically disconnected, neither innovating at home nor adopting foreign technologies. Sachs (2000) According to the new Growth theory of the 1990s, Innovation is the prime source of technological advancementwhich in turn drives economic growth. One of the prime motives of host developing countries for widely accepting and encouraging various channels of FDI is to absorb the technological spillover from the foreign country firms. The Hard Technologies (industrial processes, equipment and plant) or Soft Technologies (technical know-how, management ideas, marketing skills etc) (Dunning and Lundan 2008) contributed by Multi-national Enterprises (MNEs) are considered the main source of economic development and growth. When a multinational firm vertically integrates with the developing country firms, host firms they are forced to abide by the MNEs strict guidance and standards to ensure quality goods or services in the form of raw materials or upstream services. The foreign firms would guide and assist, both managerially and technically which would lead to improvement both in quality and quantity of service by the local affiliates. Also domestic rival firms enhance their offerings to keep in pace with the foreign affiliated firms in the market thus enhancing the host country firms productivity. The biggest US based retailer, Wal-Marts entry and rapid expansion in China has helped the logistics industry in Chinese market to climb higher level Zhu (2010). For developing countries to carve their niche in the global economy, they need to be technologically advanced. There is a possibility of importing new technology from foreign developed market, but this will cause a setback as the procedure would be expensive. Also countries will find themselves alienated from the advancement of technologies if they cant develop export markets Sachs (2008). This can be minimised to a considerable extent by MNEs trickle down effect wherein transfer of technological skills from developed countries to developing countries occurs through FDI. The transfer of Panasonics microwave manufacturing base from United States to China has led to the presence of 2800 Chinese enterprises to provide components for it, which has not only contributed new technology, but also advanced operations management techniques to Chinese market (Sinani and Meyer 2004). The risk factor due to uncertainty of new technologys results and heavy investment thwarts the developing countries from introducing any new technology from scratch. The argument in support of MNEs is that technology  is the quintessential component of economic development and demands a lot of investment in research and development (RD). Developing countries, however, lack both in skills and funds essential for RD, which has led to the deficient level of RD in  developing  economies. The host countries innovation can be stimulated because of the presence of MNEs, which would command resources necessary for RD. Hence host firms can save on cost by using the technologies which are already implemented and used by MNEs using Demonstration (by MNEs) and Imitation (by host firms) (Das 1987; Wang Blomstrom 1992, cited in Crespo and Fontoura 2007). However the patent regulation and challenge of absorbing the technological skills in the short term collaborative contracts makes the process very challenging for the firms in the emerging markets. The human resources mobility from MNEs to local firms also act as a channel of technology transfer and extension since the systematic training provided to these high-skilled employees is dissipated to domestic firms in the form of innovative managerial ability thus enhancing the domestic enterprises which would otherwise be impossible (Crespo and Fontoura 2007). Table 1: Summary of Spillover Channels of FDI (Blomstorm and Kokko (1998); Gorg and Greenaway (2001); Gorg and Strobl (2002)) The technology transfer usually occurs in a market which is imperfectly competitive and possesses no particular market structure. Since different developing countries would have different market structure, it becomes very complicated to have a generalized theory and model to find the determinant factors of technological spillover benefits to local firms (Mondal and Pant 2010). The results of empirical study by various researchers act as an alternative to analyse the net benefits of technology spillover for the host developing countries. The firms Total Factor Productivity (Factors like the level of RD, foreign presence, the firm size) can be used as a proxy to gauge technology transfer (Haddad and Harrison 1992, cited in Crespo and Fontoura 2007).According to Seck (2011) A 10% increase in a developing countrys foreign RD capital stock leads to more than a 2% percent increase in its total factor productivity. The economic development level (measured by per capita GDP) impacts strongly on RD activity (Cheung and Lin 2003). The growth in host countrys RD activities reduces the technological gap and increases the absorptive capacity of the host firm thereby benefitting the host developing country. According to Schmid (2010), A one percent increase in the Research and development (RD) expenditure is associated with a five percent increase in the likelihood of a technology transfer. He also states that the technology transfer is positively correlated to the trade flows and RD expenditure of a developing country. RD resulting in new processes and products either amplifies firms revenues or saves firms costs and is considered as the vital proxy for endogenous growth and technological advancement, Zhu (2010). In 2004, 23.7 % of industrial RD within China was performed by affiliates as compared to 21.7% in 2004 (UNCTAD 2005, cited in Dunning and Lundan 2008, p.359) which exemplifies increasing trend and possibly positive effect on host developing countries. Here the main challenge lies in finding the exact proportion of beneficial RD activities. If the relative costs of technology adoption are large to the economic value of the underlying technology (to the host country firms), there will be little adoption relatively and FDI spillover realized will also be relatively limited (Blomstrà ¶m. et.al 1999). Thus cost of technology adoption plays a major role for the technology transfer to be beneficial to the host country firms. The factors contributing to the distribution of technological capacity (which includes Higher educational institutions, Scientists and Engineers, RD laboratories and other physical and human assets) which are aided by foreign affiliates reflects the net beneficial effect on host countries due to export or FDI (Dunning and Lundan 2008). Alongside the direct effects of technological capacity of host countries, the indirect consequences can be measured through knowledge, technology and RD spillovers to host economys local firms which can be measured in terms of the raise in productivity of local firms as a result of the MNEs presence or entry into host economy. However realising the exact proportion of productivity increase solely due to MNEs contribution is a big challenge for many other factors would have aided the process. A study by Xu (2000), cited in Dunning and Lundan (2008), suggests that the spending on royalties and licence fees approximately indicates the impact of productivity enhancement caused due to technology transfer of FDI in the host countries. The absorptive capacity of the developing countries varies and accordingly the positive or negative effects based on it. The study by Feinberg and Majumdar (2001), cited in Dunning and Lundan (2008) reveals that the pharmaceutical affiliates in India experienced no spillover to local firms through locally conducted RD whereas the foreign affiliates had benefited. On the contrary, a study conducted by (Mondal and Pant 2010) shows the presence of foreign affiliates and high absorptive capacity for developing countries to impact positively on technology spillover which is elevated by a highly competitive environment. The policies of host governments towards FDI such as technology policy and Intellectual Property Protection are also plausible determinants which impacts the magnitude of the efficiency spillovers captured by host country firms. For example government policies which would encourage the RD performance like effective IP protection would alleviate the chances of FDI and intensify the technological capability of local firms which in turn would aid to exploit appropriate foreign technology (Blomstrà ¶m et al. 1999). On the other hand patents filed by developed countries would result in limited transfer of technological capabilities due to the protection of technology from imitation for 20 years. China became the largest recipient of FDI among the developing countries during 1990s due to the market for technology policy and enforcement of patent law in line with TRIPs (Trade-Related Intellectual Properties) (Cheung and Lin, 2003). Due to contradicting research data and the dependence of technology transfer benefits on the kind of industry and the level of alliance between foreign and emerging market country firms, it becomes very complicated to generalise the factors contributing to the net benefits of the developing countries. CONCLUSION According to (Dunning and Lundan 2008) The ability to create, acquire, learn, use and effectively deploy technological capacity is one of the key ingredients of economic success in virtually all societies. The exact realisation of net benefit of technology transfer to developing countries is measured using TFP as a proxy and can be enhanced by strengthening their local economy and capabilities to attract FDI inflow with the aid of strict and stringent government regulations.

Technoscience and Artificial Life :: Technology

Technoscience and Artificial Life ABSTRACT: This paper uses the theory of technoscience to shed light on the current criticisms against the emerging science of Artificial Life. We see that the science of Artificial Life is criticized for the synthetic nature of its research and its over reliance on computer simulations which is seen to be contrary to the traditional goals and methods of science. However, if we break down the traditional distinctions between science and technology using the theory of technoscience, then we can begin to see that all science has a synthetic nature and reliance on technology. Artificial Life researchers are not heretical practitioners of some pseudoscience; they are just more open about their reliance on technology to help realize their theories and modeling. Understanding that science and technology are not as disparate as was once thought is an essential step in helping us create a more humane technoscience in the future. Introduction As soon as the new sciences of Complexity, Chaos Theory, and Artificial Life (hereafter referred to as AL), began to be noticed by the popular science press a kind of "honeymoon" period began. During this time these sciences were seen as the sexy new breakthrough theories that would eventually lead to our ability to solve all the problems of the world, from the cure for AIDS to the complete understanding and synthesis of living systems. (1) Recently a number of attacks have been leveled against the studies of Complexity and Chaos Theory in general and on the study of AL directly. The most damning of these attacks on AL has been launched by John Horgan in his article "From Complexity to Perplexity," printed in Scientific American (Horgan 6/95) and in his book The End of Science. In his article Horgan fiercely criticized the study of AL with the implication that the entire study is some kind of sham. Horgan states that: Artificial Life — and the entire field of complexity — seems to be based on a seductive syllogism: There are simple sets of mathematical rules that when followed by a computer give rise to extremely complicated patterns. The world also contains many extremely complicated patterns. Conclusion: Simple rules underlie many extremely complicated phenomena in the world. With the help of powerful computers, scientists can root those rules out (Horgan 6/96, Pg. 107). Horgan goes on to argue that this position held by AL researchers is untenable and that the kind of science practiced in AL is no where near the kind of science that is normally practiced in biology.

Faith Statement

Faith Statement My faith has grown immensely over the years. Throughout my faith journey everyone at the church and in my family has influenced my life in faith. To me when you are baptized it means your parents are making you a child of God but when you get confirmed you are accepting your baptism and becoming a member of the church. Jesus is a big part of mine and everyone’s life because he died on the cross to save our sins.We pretty much all take advantage of Jesus’s love. Everyone makes mistakes, some foolish, but still Jesus will always forgive us and love us. Also, even though I know I will be forgiven, church has taught me that we should all try to do our best at doing what God wants us to do and the right thing. Since I’m a Christian, whenever I am about to do something that I think God wouldn’t want me to I think it over and try to make the best choice.I think that Holy Communion affects my life by making me feel clean and saved. Prayer is very v ital to me. Going to church has taught me that if I pray to God for help in something most of the time he delivers but when he doesn’t it’s not because he isn’t listening but simply because it’s not meant to be. Throughout the years, I have learned to help God and serve around the community. After I get confirmed I will still attend church and do service projects to help others.

Juvenile Boot Camps Do Not Reduce Juvenile Delinquency Essay

Introduction Juvenile delinquency is a relatively new phenomenon. For this reason, society’s reactions and solutions to the problem of delinquency are also modern developments. The United States developed the first youth court in 1899 and is now home to many new and formerly untested methods of juvenile rehabilitation and correction. One of many unique programs within the Juvenile Justice system, boot camps are institutions designed to keep delinquent juveniles out of traditional incarceration facilities and still provide a structured method of punishment and rehabilitation. Boot camps developed in the early 1990s and quickly proliferated throughout the nation. Specifically, they are â€Å"†¦short-term residential programs modeled after†¦show more content†¦. .. Third, States are to separate juvenile offenders from incarcerated adults . . .. Fourth, States are to address efforts to reduce the [disproportionate number of minorities] detained or confined in secure detention facilities . . .. (Ravenell, 2002) The act’s framers were concerned with the framework of the juvenile justice system. Believing that they could restrain juvenile delinquency through prevention rather than punishment, they increased the quality of the juvenile justice system. Policy specified that, â€Å"kids should be treated as kids† (Ravenell, 2002). However, rising crime rates throughout the late 1970s and 1980s lead to disillusionment with the system. The public became concerned that juvenile justice policy was too lenient. Practitioners scrambled to enact harsher penalties in an effort to slow the rising juvenile crime rates. The new policies restricted lenient punishment such as probation and lead to an increase in incarceration rates (Meade Steiner, 2010). 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