Fostering Technology Absorption in Southern African Enterprises. THE WORLD BANK Washington, D.C.
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1 Fostering Technology Absorption in Southern African Enterprises THE WORLD BANK Washington, D.C.
2 Contents Acknowledgments About the Authors Abbreviations xi xiii xvii Overview 1 The Relevance of Technology Absorption to Southern Africa 2 Channels of and Constraints to Technology Absorption 4 Policy Options for Greater Technology Absorption 6 Note 18 References 18 Chapter 1 Technology Absorption and Its Determinants 19 Smita Kuriakose, Chunlin Zhang, and Itzhak Goldberg Technology Absorption and Catch-up Growth 21
3 vi Contents The Relevance of Technology Absorption to Southern Africa 22 The Determinants of Technology Absorption: A Conceptual Framework 29 The Empirical Methodology of This Book 39 Annex 43 Notes 58 References 59 Chapter 2 Channels of and Constraints to Technology Absorption 65 Smita Kuriakose, David Kaplan, and Krista Tuomi South Africa: Auto Component Sector South Africa: Capital Goods Sector South Africa: Chemical Sector South Africa: Software and Information and Communication Technology Sector South Africa: National Innovation Survey and Enterprise Survey Namibia: Agroprocessing Sector Mauritius: Manufacturing Industries Lesotho: Textile Sector Conclusion Annex 2A: Data Supporting the Case Study Analyses Annex 2B: Survey Instrument Annex 2C: Empirical Analysis Using the NIS and the ES Data Notes References Chapter 3 Policy Options for Greater Technology Absorption 159 Chunlin Zhang, Itzhak Goldberg, David Kaplan, and Smita Kuriakose Getting the Basics Right 162 Increasing Skill Supply 164 Supporting Learning through Trade 175
4 Contents vii Taking Proactive Actions to Increase FDI Spillover 179 Building Absorptive Capacity through R&D and Industry-Research Collaboration 188 Conclusion: Designing Locally Tailored Action Plans 196 Annex 197 Notes 198 References 199 Boxes 0.1 A Brief History of Innovation Policy in OECD Countries A Brief History of Innovation Policy in OECD Countries 160 Figures 0.1 Unit Labor Costs in Selected Industries, Technology Absorption and Economic Growth Unit Labor Costs in Selected Industries, Trends in Labor Productivity and Capital: Labor Ratio in the South African Manufacturing Sector, Skill Development: An Analytical Framework 37 1 A.I South Africa's Exports of Low-, Medium-, and High-Technology Goods, A.2 South Africa's Exports of Low-, Medium-, and High-Technology Goods, Dollar Value, A.3 South Africa's Imports of Low-, Medium-, and High-Technology Goods, A.4 South Africa's Imports of Low-, Medium-, and High-Technology Goods, Dollar Value, A.5 Mauritius's Exports of Low-, Medium-, and High-Technology Goods, A.6 Mauritius's Exports of Low-, Medium-, and High-Technology Goods, Dollar Value, A.7 Mauritius's Imports of Low-, Medium-, and High-Technology Goods, A.8 Mauritius's Imports of Low-, Medium-, and High-Technology Goods, Dollar Value, A.9 Namibia's Exports of Low-, Medium-, and High-Technology Goods,
5 viii Contents 1 A. 10 Namibia's Exports of Low-, Medium-, and High-Technology Goods, Dollar Value, A. 11 Namibia's Imports of Low-, Medium-, and High-Technology Goods, A. 12 Namibia's Imports of Low-, Medium-, and High-Technology Goods, Dollar Value, A.13 Lesotho's Exports of Low-, Medium-, and High-Technology Goods, A.14 Lesotho's Exports of Low-, Medium-, and High-Technology Goods, Dollar Value, A.15 Lesotho's Imports of Low-, Medium-, and High-Technology Goods, A. 16 Lesotho's Imports of Low-, Medium-, and High-Technology Goods, Dollar Value, Top Constraints: Foreign-Owned versus Domestic Firms, South African Auto Component Sector Top Constraints: Exporters versus Nonexporters, South African Auto Component Sector Preferred Method of Technology Acquisition, Mauritius Clothing Manufacturers' Reasons for Investing in Lesotho Training Investment by Lesotho Clothing Manufacturers Capacity and Output of the Postsecondary Public Education System, South Africa, Tables 0.1 Direct Instruments for Supporting Business R&.D Composition of Global Manufacturing Value Added, Firm Characteristics 42 1A.1 Technological Classification of Merchandise Trade 44 1A.2 FDI Comparative Overview of Four Countries 55 1 A.3 Stock and Flow Contrast with Comparator Countries, South African ICT Exports 85 2A. 1 South Africa's Top 10 Automotive Component Export Destinations, by Country, A.2 South Africa's Automotive Component Export Destinations, by Region,
6 Contents ix 2A.3 South Africa's Top 10 Automotive Component Exports, by Component Category, A.4 South Africa's Top 10 Export Destinations for Capital Goods, January-June A.5 South Africa's Mining Equipment Export Destinations, A.6 South Africa's Mining Equipment Exports to Sub-Saharan Africa, A.7 South Africa's Principal Chemical Exports, A. 8 Top 16 Export Destinations for South African Chemicals 123 2A.9 Percentage Composition of Manufactured Products, Namibia 124 2C. 1 Introduction of a New Product and New Process in the Full Sample 139 2C.2 Introduction of a New Product and New Process, Innovators-Only Subsample 140 2C.3 Marketing Changes: Full Sample Probability Weights 141 2C.4 Organizational Changes: Full-Sample Probability Weights 142 2C.5 Marketing Innovation: Innovator-Only Subsample Probability Weights 143 2C.6 Organizational Innovation: Innovator-Only Subsample Probability Weights 144 2C.7 New to Market versus New to Firm 145 2C.8 Determinants of Research and Development 146 2C.9 Factors Hampering Innovation Activities, C. 10 Determinants of Technology Absorption: South Africa, ES 2003 Data 148 2C. 11 Determinants of Technology Absorption: South Africa, ES 2007 Data 150 2C. 12 Probability of Introducing a New Product in the Past Three Years, Mauritius, ES 2008 Data 152 2C. 13 Probability of Introducing a New Technology in the Past Three Years, Mauritius, ES 2008 Data Bangladesh's Garments: Growth Rates of Dollar Exports, Direct Instruments for Supporting Business R&D 191 3A.1 Incentives for Manufacturers and Exporters in Namibia 197
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