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Information Technology in The Learning Economy -Challenges for Developing Countries

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  • Dieter Ernst
  • Bengt-Åke Lundvall

Abstract

This paper inquires how the concept of the "learning economy" can be applied to the requirements of developing countries. The main purpose is to develop an analytical framework to better understand how learning and capability formation can foster industrial upgrading. Special emphasis is given to te spread of information technology (IT). We inquire under what conditions developing countries can use this set of generic technologies to improve their learning capabilities. We argue that information technology should not be regarded as a potential substitute for human skills and tacit knowledge. Instead, its main role should be to support the formation and use of tacit knowledge. In the paper we compare two stylised models of the learning economy, the Japanese versus the American model. The Japanese model is explicit in its promotion and exploitation of tacit knowledge, while the American model is driven by a permanent urge to reduce the importance of tacit knowledge and to transform it into information - that is into explicit, 4 well structured and codified knowledge. We show that each of these models has peculiar strengths and weaknesses. Developing countries need to develop their own hybrid forms of institutions that combine the advantages of both models in a way that is appropriate to their idiosyncratic needs and capabilities.

Suggested Citation

  • Dieter Ernst & Bengt-Åke Lundvall, 1997. "Information Technology in The Learning Economy -Challenges for Developing Countries," DRUID Working Papers 97-12, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  • Handle: RePEc:aal:abbswp:97-12
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    Cited by:

    1. K.J Joseph & Vinoj Abraham, 2007. "Information technology and productivity: Evidence from India's manufacturing sector," Centre for Development Studies, Trivendrum Working Papers 389, Centre for Development Studies, Trivendrum, India.
    2. Saccone Donatella, 2008. "Economic openness, skill demand and skill supply in three archetypes of developing countries: a theoretical and empirical investigation," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200813, University of Turin.
    3. Bengt-Åke Lundvall & Frank Skov Kristensen, 1997. "Organisational Change, Innovation and Human Resource Development as a Response to Increased Competition," DRUID Working Papers 97-16, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    4. Alexandros Flamos & Katherine Begg, 2010. "Technology transfer insights for new climate regime," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 12(1), pages 19-33, February.
    5. Dieter Ernst, 1999. "Responses to the Crisis Constraints to a Rapid Trade Adjustment in East Asia´s Electronics Industry," DRUID Working Papers 99-2, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    6. Yoguel, Gabriel, 2000. "Creating capabilities in local environments and production networks," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    7. K.J. Joseph, 2013. "Has Trade been an Engine of Inclusive Growth? India’s Experience under Globalization," Millennial Asia, , vol. 4(2), pages 135-157, October.
    8. Chris Benner, 2003. "Learning Communities in a Learning Region: The Soft Infrastructure of Cross-Firm Learning Networks in Silicon Valley," Environment and Planning A, , vol. 35(10), pages 1809-1830, October.
    9. Kirsten Foss & Nicolai J. Foss, 1999. "Organizing Economic Experiments The Role of Firms," DRUID Working Papers 99-5, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    10. Luciano PILOTTI & Maria VERNUCCIO & Andrea GANZAROLI, 2011. "Tassonomia, topologia e tipologia dei sistemi produttivi locali in Italia: un tentativo di sintesi," Departmental Working Papers 2011-22, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    11. Vanessa Casadella & Mohamed Benlahcen-Tlemcani, 2006. "De l'applicabilité du Système National d'Innovation dans les Pays Moins Avancés," Innovations, De Boeck Université, vol. 24(2), pages 59-90.
    12. Lundvall, Bengt-Ake & Johnson, Bjorn & Andersen, Esben Sloth & Dalum, Bent, 2002. "National systems of production, innovation and competence building," Research Policy, Elsevier, vol. 31(2), pages 213-231, February.
    13. Jukka Kaisla, 1998. "The Market Process and the Emergence of the Firm Some Indications of Entrepreneurship Under Genuine uncertainty," DRUID Working Papers 98-17, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    14. Norbert Knoll, 2002. "Information, Wissen und Innovationspolitik," WIFO Monatsberichte (monthly reports), WIFO, vol. 75(1), pages 53-59, January.
    15. Karakosta, Charikleia & Doukas, Haris & Psarras, John, 2010. "Technology transfer through climate change: Setting a sustainable energy pattern," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(6), pages 1546-1557, August.
    16. Keld Laursen, 1998. "Do Export and Technological Specialisation Patterns Co-evolve in Terms of Convergence or Divergence? Evidence From 19 OECD Countries, 1971-1991," DRUID Working Papers 98-18, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    17. Dieter Ernst, 2002. "Global production networks and the changing geography of innovation systems. Implications for developing countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 497-523.
    18. Melo, Alberto, 2001. "The Innovation Systems of Latin America and the Caribbean," IDB Publications (Working Papers) 1429, Inter-American Development Bank.
    19. Andrea Gallina, 2001. "SMEs Contribution to the Creation of the Euro-Mediterranean Region," Working Papers 0106, Economic Research Forum, revised 02 2001.
    20. K. J. Joseph & Liyan Zhang & Kiran Kumar Kakarlapudi, 2018. "The Dragon Turns around and the Elephant Moves Forward: Inequality in China and India under Globalization," Millennial Asia, , vol. 9(3), pages 235-261, December.
    21. Alexis Habiyaremye, 2019. "Enhancing productive capabilities through intra-regional trade and cross-border investments in Southern Africa," Development Southern Africa, Taylor & Francis Journals, vol. 36(4), pages 409-425, July.
    22. Tobias Stucki & Daniel Wochner, 2019. "Technological and organizational capital: Where complementarities exist," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(3), pages 458-487, June.

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    More about this item

    Keywords

    information technology; learning; learning economy; knowledge; capabilities; networks; developing countries; economic development; industrial upgrading;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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