By Martin Fransman, Kenneth King
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Extra info for Technological Capability in the Third World
These first generations of workers in tin, metal, wood and steel are separated by a wide gulf from most of the remaining rural craft skills, but are equally far from the competencies needed to service the most sophisticated products of the region's modern sectors.
Thus, for example, Ranis distinguishes the capacity to make adequate choices from the international 'technology shelf' from the capacity to adapt technology to local circumstances, and relates the latter capacity to the existence of a local capital goods sector which 'undoubtedly plays a very special role in determining indigenous capacity' . The same point is made by Stewart and, in the case studies in the present book, by Dahlman , Fransman and Katz . However, the degree of consensus regarding the importance of establishing a local capital goods sector should not mask divergences of opinion on a number of related policy questions in setting up this sector.
They operate in industrial fields in which the world 's technological frontier has not experienced very dramatic jumps in recent years, thus permitting a gradual narrowing of the relative gap that separated them from international technical standards'. For Katz and Lall , therefore, the rate of advance of the technology frontier can constitute an important constraint on Third World industrial and technological activities, and the same point is made in Stewart's paper, which emphasises, as one example of this , the significance of scale economies.