Technological development for industrial continuity

Mohamad MRAYATI

Abstract

Financial, industrial and commercial globalization increase the international competition featured by knowledge-based economy. The new era launched new challenges facing all countries including Arab world.

Knowledge became a key factor in competition. This may explain the important valuation of intangible assets.

Transforming economy from material-based goods and services G&S (where unit is atom) into knowledge-based G&S (where unit is bit) invoked changing in marketing and production operations. A knowledge good is produced one and may be sold million times, where is material goods must be reproduced every time we want to sell it.

Lecturer presented statistics to demonstrate weak productivity of Arab countries. In 1997, GDP of Arab countries is 324.2 billion$ including oil. If we exclude oil, Arab GDP (230 billion$) is less than the GDP of Holland. Statistics and comparison between populations (252.4 million versus 15.6 million people for Holland) indicates the lower productivity and the weak added value in Arab countries.

Despite 2500 billion$ of investments in the period 1980-1997, GDP per capita decreased. This confirms that these countries have transferred production equipment but they have not transferred or implemented technology.

MRAYATI defined technology as the knowledge, experiences and skills essential to design and industrialize products and to make a project to achieve this. Acquiring technology means transferring, implementing and then generating technology. Implementing the technology means understanding production tasks and raw materials characteristics and having the ability to develop them. Generating technology focuses on inventing and improving current technology in order to industrialize new products apt to compete in world market.

The article treated the management of technology. Technology has three stages (emergence, maturity, and oldness). It may be a simple or a compound technology. Technology Transfer can be achieved through licensing, strategic alliances, technical assistance, patent trademarks, and foreign direct investment…

Economists estimate that more than 50% of the GDP in OECD is knowledge-based. The classic comparative advantages in developing world (cheap labour, availability of raw materials…) are no more valid in front of knowledge-based competitive advantage.

In every country, science and technology system (STS) may be seen through two axes. Firstly, technology and scientific activity domain (human resources development, scientific research, and standardization…). And secondly, work deepness and complexity of every activity.

Many factors may influence STS Performance (legislation, and adopted strategies and policies…). MRAYATI emphasized the importance of innovation and he explained how to make the transition from the STS to the National Innovation System (NIS).

NIS necessitates a framework (a national policy for science and technology) to activate relations among the components of the national and the international STS. Creating NIS needs a special legislation (for quality, standards…), a tax motivation, and a human resources development.

Arab STS failed in transition to NIS because of the lack of awareness to the important role of science and technology in development, the insufficient number of researchers, the mediocre public and private investment rate….

Currently, Arab world must invest in intangible assets (knowledge) and has to encourage venture capital in knowledge and technology new industries. Arab world has to define a special policy to transfer, to implement, and to generate technology. This necessitates the determination of goals and priorities. The article presented suggestions to sustain this kind of policy:

¨ Legislation to prevent the monopoly of technology.

¨ Improving negotiation capacities in technology transfer.

¨ Improving knowledge and experiences rather than goods and production equipment.

¨ It is important to encourage the financing of technology transfer (venture capital…) and the experiences in technology and engineering development…