The Diffusion of
Technology
Volti Chapter 5
How are Technologies adopted by individuals and
organizations that actually put them into use?
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The International Diffusion of Technology
Myth - Technology is largely result of one’s own people -->
Technological Nativism
No Technologically dynamic nation is autonomous from
Technologies of other nations
1500's - China produced most Technology
1500 -1700's - Europe leads world in Technological advances
Yet many of these Technologies were the continuation of earlier
advances in technology from China and elsewhere
United States - heavily dependent on Technologies of other
countries since its inception
Even advances that originated in U.S. are often owed to immigrants
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Bakelight- (Leo Baekeland- Belgium)
Television Camera- (Vladimir Zworykin- Russia)
How are Technologies adopted by individuals and
organizations that actually put them into use?
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Sharing of Technology isn’t as simple as merely transplanting Technology
from place to place
Technology is a system - many components required to make it work,
resources vary from country to country
Technology needs support of human beings who understand its workings
This may vary from country to country
"A country (or an individual firm) that draws on technologies developed
elsewhere is spared the expense of ‘reinventing the wheel.’ But making
effective use of imported technologies - even if only direct copying is
Required - often requires a stock of indigenous skill that cannot always be
easily found."
How are Technologies adopted by individuals and
organizations that actually put them into use?
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Technologies shared between countries can be used for
very different purposes
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China - Gun Powder - used medicinally for centuries - passed on
to Europe
Europe - within short time using it for cannons and firearms
When Technology is transferred from one country to
another, modifications are most likely required for
Technology to work.... Thus it isn’t the exact same
Technology
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Japan and Steel Production - Japanese tried to apply Dutch
steel production but Had to make many modifications. In
particular, the special characteristics Of Japanese coal and iron
ore required special modifications
However, the assumption that Technologies of developed
nations are essential to economic and Technological
modernization of undeveloped countries is problematic
Not all countries have equal resources
(human and material)
 Even if Technologies can be transferred
the results are not always desirable
 Pakistan - introduction of tractor - replaces
worker - 40% unemployment rate
 Workers migrate to cities - dire poverty
results - per acre crop yields hardly
increased at all.
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Equal use of Technologies can
have devastating impact
U.S. (pop. 250 million) - one car/ 2 people
 China (pop. 1 billion+) - one car/ 500
people
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Could we afford to equalize resources w/out resource
and environmental breakdown???
Technology of one country may not makes
good economic sense for another country
 Poorer countries need Technologies that
create human jobs, not replace human
jobs
 Technologies are often chosen by small
power groups that represent their
interests rather than the interests of the
country
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Technology cannot be developed
strictly for economic motives:
values and morality of culture play
key role.
Selection of Technology reflects
larger issues - social and political,
as well as economic.
Business Firms and
Technological Diffusion
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Diffusion similar to that which occurs from country to
country
Factors that influence diffusion:
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Relative advantages over existing Technology
Compatibility w/ existing values of firm
Ease/difficulty of understanding and applying new Technology
Ease of experimentation with new Technology
Extent to which positive results appear
People with knowledge of Technology are KEY to
diffusion of Technology
As with countries, Technology that works in one
environment may fail in another
Economics Motives and
Technological Transfer
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Expectation of cost and benefits strongly influences
speed at which Technology is diffused
Mechanical Reaper - pre reaper - grain harvested
manually - LABOR INTENSIVE
Mechanical Reaper introduced (1830's) but diffused very
slowly until 1850's
1850's - Crimean War - increase of grain prices motivation to produce > grain
More grain - bigger farms - Mechanical reaper makes
sense to buy
Qualifications for Mechanical Reaper - may not have
been widely used because it required refinement in order
to be of practical use to farmer
Economic motive is important BUT it is still only a
presumption of the likely success of a Technology
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It often takes a long time for Technology to
move from lab. Feasibility to commercial
value:
Freon refrigerants - 1 year
 Zipper - 27 years
 Mechanical cotton picker - 53 years
 Fluorescent lamp - 79 years
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The "Not Invented Here"
(NIH) Syndrome
Risky nature of Technological innovation
blocks the diffusion of new Technologies
 "The status quo is a hell of a lot easier
than making changes." Henry Ford
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Efforts to Restrict the Diffusion
of Technology
"The exclusive possession of a particular Technology
can confer great advantages on those that have it."
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Venice - 16 cent. Glass makers - assassins sent out to
kill expatriate glass makers
England - 1719 - illegal for skilled artisans to emigrate
Present Day - strict rules against exporting technologies
Despite regulations, diffusion of technology difficult to
regulate
Patents and the Diffusion
of Technology
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Patents confer exclusive use of an invention and are,
obviously, highly desired
Patents can stifle Technological development
Patents can help diffuse Technological knowledge patent makes public the knowledge
Ideally, patents make invention known and available to
public rather that just inventor
Patent isn’t an iron-clad protection, merely a "license to
sue"
Patents often quickly out-moded by Technological
advance
Advantages/disadvantages of patent difficult weigh over
the other