Innovation versus Capacity Building

There has been a lot of interest lately in technological innovation, not only for the economic development of the United States and other advanced nations, but also for developing nations. It seems to have replaced the concern for what had been earlier identified as "technology deepening". That is too bad.

Of course, technological innovation is important. In the long run it has proven to be the most important motor for economic development. However, the key is not just innovation but innovation done well, or more exactly innovation developed to success.

It has long been recognized that most inventions are uneconomical in the short run. I think of the first steam engines that were essentially toys. The first telephones were limited by the fact that there were few people to call. Radio and television started with sets that didn't work well and were expensive, and which had little programming to entertain or inform the audience. Bicycles have been around for a long time, but the bikes used in the Tour de France are still being improved technologically. Even something as simple as the swim trunk is evolving technologically for special uses such as competitive swimming.

An organization that is innovating by adopting a technology already in use elsewhere may have an advantage of also adopting improvements made by others, but will almost always have to adapt to the new technology and will often have to adapt the technology to its own purposes and needs. Often things will get worse before they get better. It does little good to adopt a new technology and use it badely.

Thus technology innovation and technology deepening are complementary, and it makes little sense to do one without the other.