In the previous chapter, we discussed a range of development theories. Technological change was identified as one of the important sources of growth and development. This chapter singles out technological change as one of the key issues in the study of development. Two main questions will be raised: (a) to what extent is technological change really one of the driving forces in growth and development? (b) What are the consequences of accelerating global technological change for developing countries? Does technological change constitute a threat to their chances for development? Does technological change offer new opportunities for development?

The role of technology

Technology refers to the state of knowledge about how to do things, in particular how to produce valued goods and services for the satisfaction of human needs (Evenson and Westphal, 1995). Without offering a formal definition, one may say that technology stands halfway between science (abstract knowledge about the fundamental laws and regularities of the physical environment) and techniques (specific applications of technology in products or processes, singular ways of doing particular things). Prior to the twentieth century many technological advances were not based on scientific knowledge, but on practical experience, on the job tinkering and experimentation. Today more and more technology is science based.

In Chapter 1, we argued that while development is a much broader concept than economic development, growth of income per capita was one of the core dimensions of development.