Directed Technical Change and International Trade

Recent changes in comparative advantage in the largest OECD economies differ significantly from the predictions of Heckscher-Ohlin-Vanek theory. Japan's rising share of OECD machinery exports and the improvement in the comparative advantage of the USA and Germany in heavy industry were accompanied by growing scarcities of the factors used intensively in the favored sector of each country. Here we examine Acemoglu's (1998, 2002) hypothesis that technical change may be directed toward raising the marginal productivity of abundant factors. Testing this hypothesis with 1970-1992 export data from 14 OECD countries, we find evidence that international comparative advantage was reshaped by innovation biased toward the abundant factors in the largest economies.

Technological convergence: a strategic perspective

The information and communication technologies (ICT) sectors are in a process of technological convergence. Determinant factors in this process are the liberalisation of the telecommunications markets and technological change. Many firms are engaged in a process of mergers and alliances to position themselves in this new framework. Technological and demand uncertainties are very important. Our objective in this paper is to study the economic determinants of the strategies of the firms. With this aim, we review some key technological and demand aspects. We shed some light on the strategic motivations of the firms by establishing a parallel with the evolution of the retailing sector

Technological changes and industrial dynamics in Latin America

Includes bibliography

The Change from Red to White Meat: The Role of Technology

Since 1950, the composition of the U.S. meat diet has shifted markedly from red meats to poultry. For example, from 1970 to 1984, on a percapita basis, beef consumption has declined by 6.4 percent, while chicken and turkey consumptions have increased by 37.9, and 42.5 percent respectively (U.S. Department of Agriculture, 1985). The numerous studies of this phenomenon from the demand side (Chavas, 1983; Braschler, 1983; Nyankori and Miller, 1982; Moschini and Meilke, 1984; Wohlgenant, 1985, Thurman, 1987; Chalfant and Alston, 1988) have failed to achieve a consensus as to whether a change in taste contributed to this shift. One reason for the lack of consensus is that the very large price and quantity changes make it difficult to establish whether consumers are on a new indifference map. But there have been no comparable studies of the nature and causes of the technological change that has made these large consumption and price changes possible. A decrease in the relative price of poultry with respect to red meat is in any case a major explanation of recent shifts in meat consumption patterns. The main reason for such a decrease appears to be a higher rate of technical progress in the poultry industry than in the red meat industry. Substantial productivity gains in both the production and marketing of poultry over the last two decades appears to have been translated into lower retail prices for poultry. Although some productivity gains have taken place in the red meat industry, they have not matched the cost reductions in the poultry industry (Chavas, 1987). Thus, a consumption shift from beef to poultry could possibly be interpreted as a response to changing relative prices, the structural change having occurred in the meat industry. This would imply that, if the beef industry desires to maintain or expand its market, it should seek a decrease in the production and marketing costs of beef.

Technological diversification and new innovators in European regions:evidence from patent data

This paper assesses the impact of regional technological diversification on the emergence of new innovators across EU regions. Integrating analyses from regional economics, economic geography and technological change literatures, we explore the role that the regional embeddedness of actors characterised by diverse technological competencies may have in fostering novel and sustained interactions leading to new technological combinations. In particular, we test whether greater technological diversification improve regional ‘combinatorial’ opportunities leading to the emergence of new innovators. The analysis is based on panel data obtained merging regional economic data from Eurostat and patent data from the CRIOS-PATSTAT database over the period 1997–2006, covering 178 regions across 10 EU Countries. Accounting for different measures of economic and innovative activity at the NUTS2 level, our findings suggest that the regional co-location of diverse technological competencies contributes to the entry of new innovators, thereby shaping technological change and industry dynamics. Thus, this paper brings to the fore a better understanding of the relationship between regional diversity and technological change.

Regional growth, structural change, and natural disaster

Hurricanes, earthquakes, floods, and other serious natural hazards have been attributed with causing changes in regional economic growth, income, employment, and wealth. Natural disasters are said to cause; (1) an acceleration of existing economic trends; (2) an expansion of employment and income, due to recovery operations (the so-called silver lining); and (3) an alteration in the structure of regional economic activity due to changes in "intra" and "inter" regional trading patterns, and technological change.^ Theoretical and stylized disaster simulations (Cochrane 1975; Haas, Cochrane, and Kates 1977; Petak et al. 1982; Ellson et al. 1983, 1984; Boisvert 1992; Brookshire and McKee 1992) point towards a wide scope of possible negative and long lasting impacts upon economic activity and structure. This work examines the consequences of Hurricane Andrew on Dade County's economy. Following the work of Ellson et al. (1984), Guimaraes et al. (1993), and West and Lenze (1993; 1994), a regional econometric forecasting model (DCEFM) using a framework of "with" and "without" the hurricane is constructed and utilized to assess Hurricane Andrew's impact on the structure and level of economic activity in Dade County, Florida.^ The results of the simulation exercises show that the direct economic impact associated with Hurricane Andrew on Dade County is of short duration, and of isolated sectoral impact, with impact generally limited to construction, TCP (transportation, communications, and public utilities), and agricultural sectors. Regional growth, and changes in income and employment reacted directly to, and within the range and direction set by national economic activity. The simulations also lead to the conclusion that areal extent, infrastructure, and sector specific damages or impacts, as opposed to monetary losses, are the primary determinants of a disaster's effects upon employment, income, growth, and economic structure. ^

Perpetuating sales: enabling incumbent survival of radical technological shifts

This paper examines an industry whose incumbents’ specialised complimentary assets were their operations management and distribution channels. This advantage was seriously undermined by the advent of digital distribution. Radical technological change theories dictate that if incumbents in an industry without specialised complimentary assets will be replaced by entrants. This did not happen, and extant theories of incumbent survival do not explain why the incumbents remained dominant in the industry. We propose that survival is due to the unique industry characteristic of perpetuating sales. This paper will explain what is a perpetuating sales model and why does it enable incumbent survival?

Organizational responses to technological discontinuities: the case of the American College of Radiology (ACR)

A long history of organizational research has shown that organizations are affected significantly by changes in technology. Scholars have given particular attention to the effects of so-called disruptive or discontinuous technological changes. Studies have repeatedly shown that established, incumbent organizations tend to suffer deep performance declines (and even complete demise) in the face of such changes, and researchers have devoted much attention to identifying the organizational conditions and processes that are responsible for this persistent and widespread pattern of adaptation failure. This dissertation, which examines the response of the American College of Radiology (ACR) to the emergence of nuclear magnetic resonance imaging technology (NMR), aims to contribute to this well-established research tradition in three distinct and important ways. First, it focuses on a fundamentally different type of organization, a professional association, rather than the technology producers examined in most prior research. Although technologies are well known to be embedded in “communities” that include technology producers, suppliers, customers, governmental entities, professional societies, and other entities, most prior research has focused on the responses and ultimate fate of producers alone. Little if any research has explored the responses of professional organizations in particular. Second, the study employs a sophisticated process methodology that identifies the individual events that make up the organization’s response to technological change, as well as the overall sequence through which these events unfold. This process approach contrasts sharply with the variance models used in most previous studies and offers the promise of developing knowledge about how adaptation ultimately unfolds (or fails to). Finally, the project also contributes significantly through its exploration of an apparently successful case of adaptation to technological change. Though nuclear magnetic resonance imaging posed a serious threat to the ACR and its members, this threat appears to have been successfully managed and overcome. Although the unique nature of the organization and the technology under study place some important limits on the generalizablity of this research, its findings nonetheless provide some important basic insights about the process through which social organizations can successfully adapt to discontinuous technological changes. These insights, which may also be of substantial relevance to technology producer organizations, will also be elaborated.

E-learning and access : getting behind the hype

Rapid advances in information and communications technology (ICT) - particularly the development of online technologies -have transformed the nature of economic, social and cultural relations across the globe. In the context of higher education in post-industrial societies, technological change has had a significant impact on university operating environments. In a broad sense, technological advancement has contributed significantly to the increasing complexity of global economies and societies, which is reflected in the rise of lifelong learning discourses with which universities are engaging. More specifically, the ever-expanding array of ICT available within the university sector has generated new management and pedagogical imperatives for higher education in the information age.

Australian cinema’s dark sun : the boom in Australian horror film production

There has been a boom in Australian horror movie production in recent years. Daybreakers (2010), Wolf Creek (2005), Rogue (2007), Undead (2003), Black Water (2008), and Storm Warning (2006) among others, have all experienced varying degrees of popularity, mainstream visibility, and cult success in worldwide horror markets. While Aussie horror’s renaissance is widely acknowledged in industry literature, there is limited research into the extent of the boom and the dynamics of production. Consequently, there are few explanations for why and how this surge has occurred. This paper argues that the recent growth in Australian horror films has been driven by intersecting international market forces, domestic financing factors, and technological change. In so doing, it identifies two distinct tiers of Australian horror film production: ‘mainstream’ and ‘underground’ production; though overlap between these two tiers results in ‘high-end indie’ films capable of cinema release. Each tier represents the high and low-ends of Australian horror film production, each with different financing, production, and distribution models.

The mobile Internet and small business : an exploratory study of needs, uses and adoption with full-adopters of technology

The technological environment in which contemporary small and medium-sized enterprises (SMEs) operate can only be described as dynamic. The exponential rate of technological change, characterised by perceived increases in the benefits associated with various technologies, shortening product life cycles and changing standards, provides for the SME a complex and challenging operational context. The primary aim of this research was to concentrate on those SMEs that had already adopted technology in order to identify their needs for the new mobile data technologies (MDT), the mobile Internet. The research design utilised a mixed approach whereby both qualitative and quantitative data was collected to address the question. Overall, the needs of these SMEs for MDT can be conceptualised into three areas where the technology will assist business practices; communication, eCommerce and security.

Mobile data technologies and SME adoption and diffusion : an empirical study on barriers and facilitators

The technological environment in which Australian SMEs operate can be best described as dynamic and vital. The rate of technological change provides the SME owner/manager a complex and challenging operational context. Wireless applications are being developed that provide mobile devices with Internet content and e-business services. In Australia the adoption of e-commerce by large organisations has been relatively high, however the same cannot be said for SMEs where adoption has been slower than other developed countries. In contrast however mobile telephone adoption and diffusion is relatively high by SMEs. This exploratory study identifies attitudes, perceptions and issues for mobile data technologies by regional SME owner/managers across a range of industry sectors. The major issues include the sector the firm belongs to, the current adoption status of the firm, the level of mistrust of the IT industry, the cost of the technologies and the applications and attributes of the technologies.

Mobile data technology for small business : needs, uses, and adoption

The technological environment in which contemporary small and medium-sized enterprises (SMEs) operate can only be described as dynamic. The exponential rate of technological change, characterised by perceived increases in the benefits associated with various technologies, shortening product life cycles and changing standards, provides the SME a complex and challenging operational context. The primary aim of this research was to identify the needs of SMEs in regional areas for mobile data technologies (MDT). In this study a distinction was drawn between those respondents who were full-adopters of technology, those who were partial-adopters and those who were non-adopters and these three segments articulated different needs and requirements for MDT. Overall the needs of regional SMEs for MDT can be conceptualised into three areas where the technology will assist business practices, communication, e-commerce and security.

Exploring the needs for SMEs for mobile data technologies : the role of qualitative research techniques

The seemingly exponential nature of technological change provides SMEs with a complex and challenging operational context. The development of infrastructures capable of supporting the wireless application protocol (WAP) and associated 'wireless' applications represents the latest generation of technological innovation with potential appeals to SMEs and end-users alike. This paper aims to understand the mobile data technology needs of SMEs in a regional setting. The research was especially concerned with perceived needs across three market segments : non-adopters, partial-adopters and full-adopters of new technology. The research was exploratory in nature as the phenomenon under scrutiny is relatively new and the uses unclear, thus focus groups were conducted with each of the segments. The paper provides insights for business, industry and academics.

Mobile data technologies and small business adoption and diffusion : an empirical study of barriers and facilitators

The technological environment in which contemporary small- and medium-sized enterprises (SMEs) operate can only be described as dynamic. The exponential rate of technological change, characterised by perceived increases in the benefits associated with various technologies, shortening product life cycles and changing standards, provides for the SME a complex and challenging operational context. The primary aim of this research was to identify the needs of SMEs in regional areas for mobile data technologies (MDT). In this study a distinction was drawn between those respondents who were full-adopters of technology, those who were partial-adopters, and those who were non-adopters and these three segments articulated different needs and requirements for MDT. Overall, the needs of regional SMEs for MDT can be conceptualised into three areas where the technology will assist business practices; communication, e-commerce and security