Technology and competitiveness : the case of Brazilian and Indian machine tools
Industrial development throughout the world is being increasingly linked to technological developments and their adoption in industrial production. Given this framework, this study discusses major issues concerning the development of industrial technology in general and the impact of the electronics revolution in particular. It also examines the role of the government in targeting and supporting this high-tech sector, and makes policy recommendations based on comparisons of more and less successful countries. Using the Brazilian and Indian machine tool industries as examples, the authors show that excessive protection is counter-productive in industries undergoing rapid technological change. The much faster rate of innovation in electronics has led to the advent of low cost automation using microprocessors which has had a strong impact on most capital goods. Machine tools were the first to be affected. In addition, given the key role that machine tools play in the implementation of technological change in industry, the economic, technical and social implications of the process of adjustment in this industry provide lessons not only for engineering goods but also for other industrial sectors. The recommendations made on the basis of this study recognize the limited role of the government in fostering this crucial industry. According to the authors, it will be necessary to establish a stable and less protective macro-economic framework in both Brazil and India. They conclude by suggesting that changes in technology policy and tariffs be made in consultation with manufacturers and users, such that protection is progressively reduced in accordance with a definite, long-term plan. This book will serve as supplementary reading in courses on economic development, industrial economics and technological change. It will also be useful to consultants and those in the government involved with industrial and technological development
Print Book, English, 1993
Sage Publications, New Delhi, 1993