The Dynamics of Localized Technological Change Lecture 6 Course: Innovation and Technology Transfer MSc Engineering Policy and Management of Technology By: Miguel Palmeirinha & Nelson Marques 2001 Antonelli, C and Calderini, M (1999)

Introduction: Skill-intensive Industries in EE  Productivity growth  Intense and rapid Tech. Change  Learning-by-doing  Implicit knowledge Understand the Dynamics of Innovation European Industry “Traditional Sectors”

Introduction: Skill-intensive Industries in EE  Internal Organization  Wage Structure  Decision Process  Timely adoption of inputs  Parallel changes in the org.  Interaction in design changes of processes / products Technological and Organizational Change / Innovation Major Roles as a Source of Tech. Knowledge

Dynamics of Localized Knowledge  Duplications of research efforts  Delays in diffusion  Obstacles to the recombination of knowledge Technological Information should be considered a public good Losses Localized Tech. Knowledge is firm-specific Transfer or adaptation from one firm to another can cost the same as new tech.

Dynamics of Localized Knowledge  Generic (codified)  Tacit (implicit) Localized Technological Change 2 Forms of Knowledge  Internal  External Generation Process of the 2 forms of Tech. Knowledge.

Dynamics of Localized Knowledge Dynamics of the four Dimensions of Technological Knowledge TacitCodifiedInternal External LearningR&D SocializationRecombination

Role of the Demand-Pull Forces  Increase/decrease of demand  Changes in factor Cost  Competition

Basic Hypotheses  Accommodate their size to the new levels of their demand  Increase the levels of Input or the efficiency of production technology

Empirical Analysis  Mechanical Engineering Industry Discrete-parts manufacturing industry  136 firms; Six years ( )  Technological Change: Learning processes Recombination of existing knowledge R&D activities  “Integration Age” Computer Integrated Manufacturing (CIM)

Empirical Evidence  Relationship between Demand shocks Localized technological change  Correlation between Trend in demand Trend in efficiency

Empirical Evidence “Demand shocks should have an effect on efficiency trends within two years since the time of the shock itself.”

Conclusions  Localized knowledge is a mix between Generic knowledge (top-down) Tacit knowledge (bottom-up)  Industrial Technological Centers Sustain localized processes Socialize technological know-how

Centimfe  Centimfe - Technological Center for the Mould, Special Tooling and Plastics Industries Created in January 15 th 1991 Marinha Grande industrial complex. Association of 40% Public and 60% Private 170 associated companies; 90% industrial type

Centimfe - Specific Goals  To provide technical and technological support to companies;  To promote and carry on research and development activities, applied to mouldmaking, special tooling and plastics industries, which contributes to the solution of industry problems;  To promote quality increasement, acting over conditioning factors;  Support and promote technical and technological specialized training of companies' human resources.

Centimfe - Action Areas  Technical assistance in technological areas;  Specific training to companies' technicians and young-graduated people;  Spreading of technical and technological information;  Consultancy, namely in investment projects development and quality systems implementation, regarding company certification.

Centimfe - Services  Manufacturing Technologies  Product Design and Development  Quality Systems  Information Technologies  Calibration Laboratory  Dimensional Control Laboratory  Material Laboratory  Training

Centimfe - Projects  ROUND THE CLOCK - 24 Hours Collaborative Product Development Work Project  ENGENHARIA DE POLÍMEROS - Master Degree and Specialisation /2000  CLUB RP - Rapid Prototyping Users and Suppliers European Network  PME SME Technological Innovation Support Project  TECNOEVOLUTION - Adaptation of Human Resources to Technological Evolution