INTERNATIONAL COMPARISON OF NATIONAL POLICY INSTRUMENTS AND INNOVATION SYSTEMS FOR TECHNOLOGY DEVELOPMENT

Effective national systems for technology development are underpinned by educational systems that are continually restructured, with an accent on technical and vocational education providing a growing pool of skilled workers and technicians, and fostering rapid expansion of engineering, business and computer education. Sustained efforts on strengthening the skill base can convert enclave type labour-intensive operations into horizontally integrated manufacturing, with ever increasing development of manufacturing-complimentary service activities. Fiscal incentives like grants and tax incentives can be put into operation only after a critical mass of this technically trained human resource is developed. In addition to the creation of a pool of technically trained personnel who would emerge as techno entrepreneurs and skilled workers in other firms for effective networking, the State should encourage positive spillovers from foreign companies through a variety of instruments. High level of education does not necessarily mean the automatic creation of technological dynamism and productivity catch-up if institutionalized inactivity in R&D is not averted