Technology Support for Small-scale Industry in Developing Countries: A Review of Concepts and Project Practices

Abstract

The paper is a review of approaches towards institutional technology support for small-scale manufacturing enterprises in developing countries since the early 1970s. Early programmes tended to suffer from a number of weaknesses, stemming from a limited conceptualization of technology and an inadequate understanding of the role of the small-scale sector in industrial development more broadly. There was also a lack of practical experience with project implementation. However, in recent years important advances have been made on all these fronts. Four features of recent technology assistance programmes that have tended to be associated with success are discussed, and illustrated with evidence from different projects. Broadly, successful projects: (a) embrace the notion that durable competitiveness of small producers in a competitive economic environment requires that they develop internal capabilities to effectively assimilate, use and adapt product and process technologies; (b) are demand-driven; (c) target the assistance to groups of producers with common interests and problems, and help them to organize themselves in collective bodies that can evolve into self-help institutions; and (d) include appropriate incentive structures based on market principles.

Environmental leapfrogging in developing countries: A critical assessment and reconstruction

“…Against this background, a growing number of academics and policy makers have suggested a greater role for indigenous firms which, it is argued, are better placed to develop and manufacture technologies that meet local needs than their foreign counterparts (Dooley and Runci, 1998;Wicklein, 1998;IPCC, 2001;Pachauri, 2002;Wilkins, 2002). Since local firms enjoy proximity to end users, they are better positioned to engage in the close, ongoing and iterative relationships that are now known to play a critical role in the successful innovation and commercialization of locally appropriate designs (Murphy, 2001;Romijn, 2001). Likewise, locally owned firms, particularly firms of low-and medium technology, are often capable of generating products at a fraction of the cost of firms headquartered in developed economies (Bennett and Vaidya, 2002).…”

“…Such assistance should fulfill three key functions. First, it should attempt to provide firms with the knowledge and information needed to initiate and pursue the innovation and commercialization of technologies on an ongoing basis (Romijn, 2001). Relevant examples in this regard include specialist technical training, facilitating the use of external consultants and assistance in preparing business plans.…”

“…In practice, this will involve many of the same policies used to build innovative capabilities amongst equipment suppliers: the provision of information, training and consultancy support in the identification, selection, acquisition and absorption of leapfrog technologies; as well as innovative financing mechanisms that enable firms, and especially small ones, to purchase more sophisticated technologies (IPCC, 2000). It also means supporting those activities known to promote learning investments such as linking firms to new customers, assisting firms with specific operational problems, selective subsidies, and so forth (Romijn, 2001).…”

The Design and Manufacturing of Essential oil Distillation Plant for rural poverty Alleviation in Ethiopia.

“…mall-scale industries have been noticed a prime mode of growth in many developing countries. The experience of many developing countries currently with high economic transition like Japan china, India, Korea is a case in history (Romijn 2001). For instance, as early as 1900, before Japanese technology became self-reliant, the products of small scale industries made up a high percentage of Japan's exports (Takeshi 1990).…”

Impact of prototyping resource environments and timing of awareness of constraints on idea generation in product design

“…However, there is a relative lack of literature on the variety of "material cultures" and their impact on prototyping and product design, especially in educational settings. Some researchers have delved into production and design in resource-constrained settings, but have focused on the industrial sector or micro-enterprises (Carvajal et al, 1990;Donaldson and Sheppard, 2004;Kabecha, 1999;Romijn, 2000). Most studies suggest that more investment is required and/or that social structures should be encouraged to create design clusters and "innovation systems" in order to lower barriers to design, although Donaldson also draws attention to the nature of supply chains in Kenya which could be obstacles to design (2006).…”