Introduction

Abstract

The acquisition of technological capability is essential for industrial growth. “Technological capability” is not synonymous with the ability to develop entire technologies, the “breakthroughs” that play so visible a role in advanced economies. Rather, it is first and foremost the ability to learn, to master progressively the many elements involved in producing industrial goods. For almost all developing countries, this entails absorbing technologies that are in widespread use elsewhere. Absorption is neither easy nor passive. Considerable skill is required, for example to:

• identify the technologies that should be used, and design and build the facilities in which they are embodied;

• adapt facilities, processes and products to the peculiarities of local raw materials and other inputs, factor prices, and market demand;

• train personnel;

• ensure that plant and equipment are maintained and that quality standards are enforced;

• cope with breakdowns, unexpected outages, deficiencies in layout and scheduling, and unexplained changes in product or process performance; and

• adjust to process and product improvements when these occur.