Technological progress is the main factor that drives an economy to sustainability. Over time, Asian countries have embraced technological development, which has contributed significantly to the growth of most of their economies.
Because of the need of innovation to foster economic growth, most Asian countries have undergone a transition from being adopters of technologies to become independent technology innovators. Previously, the Asian countries used the United States and Europe’s technological innovations and inventions without emphasizing the need to advance such technologies themselves.
Upon realising that innovation is a key factor concerning the realisation of long-term economic growth, these countries have adopted the current technology in all aspects of their production (Nelson 2005, p. 125). The innovation process must be supported by a complex set of social institutions for it to be the main pillar of growth.
Because of the growth theory and the development theory having fostered the process of technological advancement as the core reason for economic growth, most of the Asian economies have embarked on the initiative. It is now understood that unlike in the past where technology was a sub-segment of economic growth, it is central in the realisation of economic development.
Consequently, in this regard, economies have embarked on the evaluation of the importance and means of attaining technological advancement. This has necessitated the adoption of technological progress as an endogenous element in the realisation of economic growth (Ting 1985, p. 74). In this regard, it has been possible to identify the two fundamental modes of technologically progression.
These are innovation and adoption. Innovation refers to the process of establishing new and unique technologies based on the improvement of old technologies.
On the other hand, adoption entails the introduction of technologies, created in a different location, in a new economy. Any economy needs to utilise the two modes of technology improvements in a balanced ratio for it to become technologically robust.
The analysis of the two modes of technology indicates that countries that opt for innovation as their ingredient for technology are more economically empowered compared to the adopters. Essentially, most Asian countries chose adoption to progress their economies by improving the living conditions of their citizens.
In this regard, Asian countries noted the lags created by the adoption of technology over their counterparts who were innovating. This implied that the continual adoption of technology from the innovators resulted in an increasing gap between the adopter and innovator in terms of the income per capita.
Furthermore, there existed multiple barriers for an adopter concerning technology advancement due to the limitation provided by patented innovations. In this regard, several Asian economies sought to achieve the level of technology innovators. The process of the transition from a technological adopter to a technological innovator was the main conduit to economic growth and technology independence (Carayannis 2006, p. 146).
Nevertheless, numerous challenges were encountered since technology innovation is a cumbersome and involving task compared to adoption. Additionally, the earlier nature of the Asian economies being effective adopters affected the transition process. Repeatedly, the Asian economies were viewed as having little innovativeness capacity.
This necessitated the establishment of numerous infrastructures to enhance innovation. The main initiative of this focus was to attain a technology advancement that sought to narrow the gap between developed countries and the Asian countries in terms of the income per capita.
Meanwhile, the market was established to have a considerable influence on the innovation process. This is because innovation on its own cannot survive without the contribution of the output technology’s demand and supply forces. Nevertheless, technological innovation in Asia has been on the rise since it is not a market-driven phenomenon.
In this regard, such economies have integrated the market and non-market institutions to contribute significantly to the process of technological innovation. Additionally, this process requires the formulation and adoption of innovation strategies that promote high innovative economic systems for it be successful.
Notably, the realisation of the innovation strategy’s need has been witness more in Asia than in any other part of the world. The fact that the Asian economies demand a completely new approach to technology since it is on the verge of development has significantly facilitated this process (Gapinski 1999, p. 154). As a result, most economies have tried to discover the crux of the innovation process and its contribution towards economic development and growth.
Since innovation is the main factor of technological process, it has several characteristics concerning its interactive nature with the mix of the market and non-market institutions. Initially, the innovation of technological structures is believed to be a science-based process.
In this regard, the elements of higher education must have the appropriate attitude and capability to contribute towards the success of the innovation strategies set by governments. Consequently, governments must place considerable investments in the higher education while adopting the latest education systems to enhance the realisation of innovation.
In this regard, major institutions can adopt technological inventions in their countries while fostering the advancement of such ideas. Notably, the Asian economies realised this fact and inputted a significant amount of capital towards the higher education.
Evidently, the combination of this move with the right structure and mentality adopted by the people, has led to the witnessing of technological progress by the Asian economies.
Site specificity is as a crucial component for the successful technology adoption or innovation process. The undertaking of any technological improvements to address the local challenges should be in consideration of a country’s local conditions. In this regard, the Asian economies valued their own ecological characteristics and adopted or developed the technologies that suited their needs.
On this note, any challenges whether health, agriculture, energy use, culture or infrastructure were addressed in relation of their capabilities and convenience to the available technologies (Babu 2005, p. 106). This implied that not all the technologies innovated by the Asian countries’ counterparts whether in the United States or Europe were suitable to their needs.
The process of technological innovation entirely depends on the market-based incentives considered and the capacity of the market itself. On this note, the extent of the market determines the success an innovation strategy and its contributory elements to the economy.
Considering the fact that the implementation of any innovative idea demands a one-time and irreversible amount of capital, it is vital to analyse its output critically to regain the invested capital through subsequent sales.
Additionally, a limited market for technological output would be insignificant. In this regard, the Asian economies have realised this concept and adopted open economy systems contributing immensely to technological progress.
Additionally, the fact that most Asian countries are export-oriented has enabled them to access the global market with ease. Notably, closed economies have a little access to foreign ideas as well as a limited market for their innovation outputs.
At stake is the notion of idea sharing for technological improvements and innovation. Ideally, when people share ideas, the ideas are not lost to the first person, but provide room for the refinement and improvement of technology.
As a result, everybody can participate in the expansion of the technological knowledge without depriving others of their ideas and inventions. Due to lack of rivalry, the society as a whole benefits from the dissemination of new and critical ideas, which contribute to economic growth.
Notably, any economy that attaches value to knowledge promotes the widespread diffusion of basic technological knowledge that aims at fostering economic growth (Pak 2003, p. 128). Certainly, on analytical and critical view, this notion would cause the disappointment and non-satisfaction of the inventors of new ideas due to the free and broad distribution of their ideas.
This implies that to restore their morale and self-esteem, these individuals must be recognized and rewarded. Moreover, their inventions ought to be patented to avoid the duplication of similar ideas.
In this regard, the Asian countries have embarked on the process of encouraging their scientists through social status, prizes, fame and direct market incentives. Thus, technological scientists have been significant in the tussle of realising economic development in such economies.
Innovative technological ideas demand specific forms of organisation that develop, examine and prove them. These organizations include universities, government research laboratories, and private companies engaged in scientific studies.
In this regard, innovation requires the consolidation of numerous ideas. Therefore, it demands the entrepreneurs within any organisation to exercise their risk-taking skills in experimenting new ideas in the market (Ting 1985, 184). Entrepreneurs must initially engage in the learning and mastering of new ideas before implementing them for this initiative to be productive.
Notably, it is known that the courage to take risks allow entrepreneurs to invest heavily in their companion’s knowledge in the attempt to market the output of their ideas. This unique phenomenon is exhibited by the economies with the urge for economic growth, a situation that was rare in the traditional economies. Importantly, the Asian countries have appropriately adopted this concept.
The achievement of the technological progress for a sustainable economic growth demands financing mechanisms that accommodate knowledge in both the public and private sector. Definitely, these institutions should provide capital to such initiatives despite being intangible and non-collateral.
Noting that the major financial institutions like banks do not lend funds to people with creative ideas, new financial providers should be established to offer such individuals a chance. In this regard, the need of venture capitalists becomes very essential. These venture capitalists provide capital to non-collateral ideas with the anticipation that the new ideas will become commercially viable when implemented (Itō 2005, p. 104).
For the Asian economies, this element of financing has been identified and a lot of capital allocated to them. This implies that venture capitalists have been on the process of identifying individuals with realistic and achievable ideas.
As a result, most individuals with practical ideas have been given the opportunity to implement their ideas. Furthermore, people have been considerably encouraged thus boosting the efforts towards the realisation of technological innovation and economic growth.
It is essential to set up effective intellectual property rights system for any government to provide the protection of its citizens’ technological innovation. The core issue on such matter is that the judicial system should be an independent institution that promotes the rule of law.
On this note, the intellectual property rights within the constitution can protect scientists’ inventions and innovations. In this regard, several Asian economies have established judicial systems that are independent from any political disputes or intellectual rights regimes.
These legal institutions have marked a crucial motivation towards the long-term development of most of the Asian economies. As a result, scientists’ are motivated to work towards embracing the set legal guidelines concerning the innovation of technological ideas.
Through the creation of a conducive and convenient administrative structure that enhances business start-ups’ conditions, many ideas can be presented to the market. Despite the Asian countries insisting on technological innovations, several have focused on making innovations available in the market to realise the input costs.
On this note, the major financial institutions and venture capitalists provide the start-up capital for such individuals (Carayannis 2006, p. 165). As a result, the government can earn benefits from the long-term application of the available knowledge whether in business or science. The government or a private orgnaisation should monitor any business enterprise offered with a start-up capital for the effective use of funds.
In this regard, the firms emerging because of innovation should have a clear and effectively structured business plan. The matters of interest in a firm are organisational structures, which include delegation approaches, productivity-based compensation, and the improvement of knowledge and skills within an enterprise.
This implies that a business would focus on its core objectives of profit making while offering chances to its staff for knowledge acquisition or improvement.
Economically, technological advancement is critical in the realisation of the long-run economic growth. In this regard, researches indicate that although technological diffusion is vital for economic development, it is essential to note the significance that innovation plays in an economy.
In this regard, the Asian economies should realise the need to transform from being technology adopters and become innovators as a sole drive to technological advancement. Notably, the proper social systems should be set up to enhance the realisation of technological improvements.
Nevertheless, the individuals within the economies should be imparted with the appropriate mindsets through education on the importance of technological advancement and the means of achieving it. Additionally, the usage of such technologies should be appreciated with continual improvements (Rondinelli 2007, p. 110).
Overtime, the process of innovation has presented numerous challenges for countries that have attempted to realise this goal. The main challenges have been the lack of appropriate creativity and financial capacities of some of the Asian countries.
As a result, most economies have resorted to the adoption of technology from developed countries that have limited commercial outputs and rewards for the participants. Concerning the financial aspect of these countries, a lot of finance is placed at the risk of new ideas, which in most cases may not be practical.
This is influenced by the fact that any tested knowledge or idea cannot be ascertained whether its output will be effective. Similarly, since most of the innovations financed could only be viable in the domestic market, the cost of the input will outweigh their benefits. Another factor influencing innovation is the population size of the Asian economies.
Because of the large population sizes, the balance of knowledge acquisition by all individuals becomes a hindering factor in the achievement of technological innovations. Most individuals attain a moderate level of education, which cannot guarantee a majority of them to engage in innovations.
Regardless of the fact that the innovation process is a challenge to economies due to the need of utmost focus, attention, and institutional creativity, proper measures will boost its attainment. Considering that Asia has the necessary resources and knowledgeable workforce, it can become the center of science-based innovations.
In this regard, the most populated countries in Asia such as China and India will considerably contribute to the economy as a whole. As a result, the structure and perception of these economies will be positively transformed. Similarly, the 21st century will be well endowed with the best technology that will improve the living standards of people and means of operation (Itō 2005, 172).
Nevertheless, knowledge acquisition would be generally accessible with the availability of the relevant materials. This implies that the gap between the developed and the developing countries due to knowledge or income per capita would be significantly reduced. As a result, it enhances the long-run sustainability of economic growth.
References
Babu, S. C., & Gulati, A. (2005). Economic reforms and food security: the impact of trade and technology in South Asia. Food Products Press: New York.
Carayannis, E. G., & Campbell, D. F. (2006). Knowledge creation, diffusion, and use in innovation networks and knowledge clusters: a comparative systems approach across the United States, Europe, and Asia. Praeger Publishers: Westport, CT.
Gapinski, J. H. (1999). Economic growth in the Asia Pacific region. St. Martin’s Press: New York.
Itō, T., & Rose, A. (2005). International trade in East Asia. University of Chicago Press: Chicago.
Nelson, R. R. (2005). Technology, institutions, and economic growt. Harvard University Press: Cambridge, Mass.
Pak, N. K. (2003). The integration of science and technology systems of the Central Asian republics into the western world. IOS Press: Amsterdam.
Rondinelli, D. A., & Heffron, J. M. (2007). Globalization and change in Asia. Lynne Rienner Publishers: Boulder.
Ting, W. (1985). Business and technological dynamics in newly industrializing Asia. Quorum Books: Westport, Conn.